Inter Parfums, Inc. (IPAR) Balance Sheet

Retained earnings grew from $724M to $881M over the ten-quarter window, which suggests internal profit generation is the primary driver of equity expansion. Total assets remained near $1.4B to $1.6B, implying the growth in equity is not being financed by a rapid expansion of the liability base. This pattern appears consistent with a business that funds itself largely from accumulated earnings, though investors should monitor whether the balance sheet strength persists if quarterly earnings remain volatile.

The peak D/E of 0.26 in Q2 2025 coincided with debt of $279.5M, indicating that borrowing has been used episodically, possibly to fund working capital needs rather than as a persistent capital structure choice. Net debt of roughly $80M at the latest quarter is small relative to equity, though it is not zero, which warrants monitoring of whether debt levels track seasonal inventory build cycles. Refinancing risk appears limited given the scale of debt relative to the equity base.

Cash balances swung between $39M and $170M across the period, which suggests the company's liquidity buffer depends meaningfully on the timing of receivable collections and inventory cycles. A current ratio above 3.0 provides a cushion, though a portion of current assets is likely inventory and receivables that are not immediately convertible to cash. Investors should view the liquidity position as adequate rather than excessive given the lumpy cash profile.

The gradual decline in goodwill may reflect currency translation effects on European-denominated balances rather than impairment, though the reported data alone cannot confirm this. Net PPE contraction alongside minimal capital expenditure suggests depreciation is outpacing reinvestment, which is typical for a licensing-driven business. The asset base is therefore not a source of earnings growth, and the value of the balance sheet rests primarily on working capital and brand license economics.