Inter Parfums Inc (IPAR)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	127,897	128,983	138,565	145,128	151,494	107,942	117,354	125,164	132,902	126,636	133,244	9,173	10,136	19,384	18,858	9,781	10,734	10,606	10,477	15,971
Total stockholders’ equity	US$ in thousands	699,393	690,309	668,201	658,406	616,782	574,696	569,814	584,559	571,920	585,659	561,319	540,112	535,835	499,460	465,988	462,024	468,004	457,261	458,989	453,891
Debt-to-capital ratio		0.15	0.16	0.17	0.18	0.20	0.16	0.17	0.18	0.19	0.18	0.19	0.02	0.02	0.04	0.04	0.02	0.02	0.02	0.02	0.03

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $127,897K ÷ ($127,897K + $699,393K)
= 0.15

Interpreting Inter Parfums, Inc.'s debt-to-capital ratio reveals the proportion of debt used to finance the company's operations compared to total capital, which includes both debt and equity. The trend analysis shows a slight increase in the debt-to-capital ratio from Q1 2022 to Q1 2023, indicating a higher reliance on debt financing over this period.

The ratio increased steadily from 0.17 in Q2 2022 to 0.23 in Q1 2023, suggesting the company has been gradually taking on more debt relative to its total capital. This upward trend could signify a shift towards more aggressive leveraging to support growth initiatives or manage cash flow, which may pose increased financial risk.

However, it is essential to consider the industry benchmarks and the company's specific circumstances when evaluating the debt-to-capital ratio. A higher ratio may not necessarily be negative if the company can effectively manage its debt obligations and generate sufficient returns to cover interest expenses. Further analysis of Inter Parfums, Inc.'s overall financial health and debt management strategy would provide a more comprehensive understanding of its capital structure.