Inter Parfums Inc (IPAR)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	115,734	127,897	151,494	132,902	10,136
Total assets	US$ in thousands	1,411,260	1,369,330	1,308,540	1,145,360	890,145
Debt-to-assets ratio		0.08	0.09	0.12	0.12	0.01

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $115,734K ÷ $1,411,260K
= 0.08

Interpreting the debt-to-assets ratio for Inter Parfums Inc over the years indicates the portion of the company's assets financed by debt. On December 31, 2020, the ratio stood at a very low 0.01, suggesting a minimal reliance on debt for asset financing. However, there was a notable increase in the ratio to 0.12 by the end of 2021, indicating a greater proportion of assets being funded by debt compared to the previous year.

The ratio remained stable at 0.12 for both the end of 2021 and 2022, suggesting a consistent level of debt utilization for asset financing during this period. A slight decrease to 0.09 by the end of 2023 may imply a more efficient management of debt in relation to assets. The ratio further decreased to 0.08 by the end of 2024, possibly indicating improved asset management or a reduction in debt levels relative to assets.

Overall, the trend in Inter Parfums Inc's debt-to-assets ratio reflects fluctuations in the company's debt and asset structure over the years. The company transitioned from very low debt reliance to a slightly higher ratio before experiencing a gradual decline towards the end of the period, potentially signaling improved financial health and more optimal debt management practices.