Inter Parfums Inc (IPAR)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 274,796 | 225,724 | 167,719 | 131,228 | 59,570 |
| Interest expense | US$ in thousands | 7,825 | 11,253 | 3,599 | 2,825 | 1,970 |
| Interest coverage | 35.12 | 20.06 | 46.60 | 46.45 | 30.24 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $274,796K ÷ $7,825K
= 35.12
Inter Parfums Inc's interest coverage ratio has displayed fluctuations over the last five years. Starting at 30.24 in December 2020, the ratio strengthened significantly to reach 46.45 by December 2021 and continued this positive trend in December 2022, reaching 46.60. However, there was a slight decline in December 2023 to 20.06 before rebounding to 35.12 in December 2024. Overall, the company's interest coverage ratio indicates its ability to meet interest obligations from its earnings. The particularly high ratios in 2021 and 2022 suggest a comfortable cushion to cover interest expenses, although the decrease in 2023 may warrant further monitoring to ensure the sustainability of the company's interest coverage over time.
Peer comparison
Dec 31, 2024