Inter Parfums Inc (IPAR)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,369,330	1,308,540	1,145,360	890,145	828,832
Total stockholders’ equity	US$ in thousands	699,393	616,782	571,920	535,835	468,004
Financial leverage ratio		1.96	2.12	2.00	1.66	1.77

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,369,330K ÷ $699,393K
= 1.96

The financial leverage ratio of Inter Parfums, Inc. has shown fluctuations over the past five years. In 2023, the ratio decreased to 1.96 from 2.12 in 2022, indicating a slight improvement in the company's financial leverage position. This suggests that the company relied less on debt financing in 2023 compared to the previous year.

However, it is worth noting that the ratio was higher in 2022 and 2021 compared to 2020 and 2019, indicating a potential shift towards a higher level of debt usage during those years. Despite the decrease in 2023, the ratio remains above 1, indicating that a portion of Inter Parfums' assets is funded by debt.

Overall, the trend in the financial leverage ratio suggests that Inter Parfums has been actively managing its capital structure, with some variability in the level of leverage employed over the years. Further analysis of the company's debt management policies and overall financial health would provide additional insights into its leverage strategy.