Inter Parfums Inc (IPAR)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	699,393	616,782	571,920	535,835	468,004
Debt-to-equity ratio		0.18	0.25	0.23	0.02	0.02

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $127,897K ÷ $699,393K
= 0.18

The debt-to-equity ratio of Inter Parfums, Inc. has fluctuated over the past five years, ranging from 0.05 to 0.29. Notably, the ratio increased from 0.05 in both 2019 and 2020 to 0.26 in 2021 before decreasing to 0.23 in 2023. This indicates that the company has been utilizing more debt relative to equity in recent years, peaking in 2021. A higher debt-to-equity ratio suggests that the company relies more on debt financing, which can indicate higher financial leverage and potentially higher financial risk. However, the current ratio of 0.23 in 2023 shows a moderation in the use of debt compared to the previous year. Overall, the trend in the debt-to-equity ratio for Inter Parfums, Inc. highlights the importance of closely monitoring the company's capital structure and financial risk management strategies.