Inter Parfums Inc (IPAR)

Debt-to-equity 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-equity ratio		0.16	0.18	0.25	0.23	0.02

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $115,734K ÷ $744,871K
= 0.16

The debt-to-equity ratio of Inter Parfums Inc has shown a fluctuating trend over the past five years, starting at a low of 0.02 on December 31, 2020, and gradually increasing to 0.25 on December 31, 2022. The ratio decreased slightly to 0.18 on December 31, 2023, and further declined to 0.16 on December 31, 2024.

A debt-to-equity ratio below 1 generally indicates that a company has more equity than debt, suggesting a lower risk level in terms of financial leverage. The initial low ratio in 2020 suggests a conservative capital structure with minimal debt reliance. The subsequent rise in the ratio could indicate an increase in debt relative to equity, potentially due to financing activities for expansion or investment opportunities.

The decrease in the debt-to-equity ratio in the later years suggests a possible reduction in debt or an increase in equity, which may indicate improved financial health or a strategic shift towards equity financing. Overall, monitoring this ratio over time can provide insights into the company's capital structure, risk profile, and financial flexibility.