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.