Inter Parfums Inc (IPAR)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	744,871	699,393	616,782	571,920	535,835
Debt-to-capital ratio		0.13	0.15	0.20	0.19	0.02

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $115,734K ÷ ($115,734K + $744,871K)
= 0.13

Interpreting the debt-to-capital ratio trend of Inter Parfums Inc from December 31, 2020, to December 31, 2024, reveals a notable increase over the years. The ratio rose from 0.02 in 2020 to 0.19 in 2021 and further to 0.20 in 2022 before experiencing a slight decrease to 0.15 in 2023 and then to 0.13 in 2024.

This indicates that the company's reliance on debt as a source of capital has grown significantly in recent years, peaking in 2022 before somewhat stabilizing and declining slightly in the following years. Overall, this trajectory suggests a shift in the capital structure of Inter Parfums Inc towards greater indebtedness, which may have implications for its financial risk and solvency. Further analysis of the company's debt management and financial strategy would be prudent to assess the impact of this trend on its overall financial health.