Inter Parfums Inc (IPAR)

Interest coverage

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	225,724	226,105	205,327	194,707	167,718	140,142	141,826	140,903	131,228	159,506	128,041	84,508	59,569	49,340	55,070	79,012	91,472	88,952	86,905	85,492
Interest expense (ttm)	US$ in thousands	11,253	8,040	6,325	5,072	3,598	2,069	3,084	3,331	2,825	3,804	2,255	1,346	1,970	2,442	2,678	2,520	2,145	2,238	2,377	2,742
Interest coverage		20.06	28.12	32.46	38.39	46.61	67.73	45.99	42.30	46.45	41.93	56.78	62.78	30.24	20.20	20.56	31.35	42.64	39.75	36.56	31.18

December 31, 2023 calculation

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

The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. In the case of Inter Parfums, Inc., the interest coverage ratio for Q4 2023 is substantially high at 479.74, indicating that the company generated a significant amount of operating profit relative to its interest expenses during that period. This suggests that Inter Parfums, Inc. is comfortably able to meet its interest obligations with its current level of operating income.

It is important to note the absence of data for Q3 2023, Q2 2023, and Q1 2023. However, based on the available information for Q4 2022, Q3 2022, Q2 2022, and Q1 2022, Inter Parfums, Inc.'s interest coverage ratios have generally been healthy and consistent, ranging from 88.21 to 90.62. This consistency indicates that the company has maintained a strong ability to cover its interest expenses over multiple quarters.

Overall, the high interest coverage ratio in Q4 2023 and the consistent ratios in prior quarters suggest that Inter Parfums, Inc. has a solid financial position and is effectively managing its debt obligations, enhancing its financial stability and ability to service its debt in the long term.