Inter Parfums Inc (IPAR)

Interest coverage

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Earnings before interest and tax (EBIT) US$ in thousands 225,724 167,719 131,228 59,570 91,471
Interest expense US$ in thousands 11,253 3,599 2,825 1,970 2,146
Interest coverage 20.06 46.60 46.45 30.24 42.62

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $225,724K ÷ $11,253K
= 20.06

The interest coverage ratio for Inter Parfums, Inc. as of December 31, 2023, is reported at a very high level of 479.74. This indicates the company's strong ability to meet its interest obligations with its operating income. A high interest coverage ratio signifies that the company is comfortably able to pay its interest expenses on outstanding debt using its earnings, which is a positive indicator of financial health and stability. However, the lack of data for previous years makes it difficult to assess the trend in the company's interest coverage over time.