Inter Parfums Inc (IPAR)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	127,897	151,494	132,902	10,136	10,734
Total assets	US$ in thousands	1,369,330	1,308,540	1,145,360	890,145	828,832
Debt-to-assets ratio		0.09	0.12	0.12	0.01	0.01

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $127,897K ÷ $1,369,330K
= 0.09

The debt-to-assets ratio of Inter Parfums, Inc. has shown some variations over the past five years. In 2023, the ratio stood at 0.12, which indicates that 12% of the company's assets were financed by debt. This represents a slight decrease compared to 2022 when the ratio was 0.14.

Looking back further, the ratio was relatively stable around 0.13 in 2021, but notably lower at 0.03 in both 2020 and 2019. The significant decrease in 2020 suggests that the company relied less on debt to finance its assets during that period.

Overall, the trend in debt-to-assets ratio indicates that Inter Parfums, Inc. has generally maintained a conservative approach to leverage, with the ratio fluctuating within a relatively low range. The company's ability to keep the ratio low signifies a healthier balance between debt and assets, which may reduce financial risk and enhance financial stability in the long run.