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IPAR (Interparfums) Degree of Financial Leverage : 1.01 (As of Mar. 2025)


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What is Interparfums Degree of Financial Leverage?

Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT). Interparfums's Degree of Financial Leverage for the quarter that ended in Mar. 2025 was 1.01. The higher Degree of Financial Leverage, the more volatile earnings will be.

The industry rank for Interparfums's Degree of Financial Leverage or its related term are showing as below:

IPAR's Degree of Financial Leverage is ranked better than
50.54% of 1868 companies
in the Consumer Packaged Goods industry
Industry Median: 1.01 vs IPAR: 1.01

Interparfums Degree of Financial Leverage Historical Data

The historical data trend for Interparfums's Degree of Financial Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Interparfums Degree of Financial Leverage Chart

Interparfums Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Financial Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.09 1.09 1.29 0.84 1.08

Interparfums Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Financial Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.07 -4.27 2.56 1.08 1.01

Competitive Comparison of Interparfums's Degree of Financial Leverage

For the Household & Personal Products subindustry, Interparfums's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Interparfums's Degree of Financial Leverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Interparfums's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Interparfums's Degree of Financial Leverage falls into.


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Interparfums Degree of Financial Leverage Calculation

Interparfums's Degree of Financial Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Financial Leverage=% Change in Earnings per Share (Diluted)**/% Change in EBIT
=( 5.14 (Mar. 2025) / 4.35 (Mar. 2024) - 1 )/( 280.642 (Mar. 2025) / 237.763 (Mar. 2024) - 1 )
=0.1816/0.1803
=1.01***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Interparfums  (NAS:IPAR) Degree of Financial Leverage Explanation

Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.

The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.

Be Aware

The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.


Interparfums Degree of Financial Leverage Related Terms

Thank you for viewing the detailed overview of Interparfums's Degree of Financial Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Interparfums Business Description

Traded in Other Exchanges
Address
551 Fifth Avenue, New York, NY, USA, 10176
Interparfums Inc operates in the fragrance business and produces and distributes a wide array of prestige fragrance and fragrance-related products. It sells its product under the brand which includes Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Lanvin, Moncler, Montblanc, Rochas and Van Cleef & Arpels. The company operates in two operating segments namely European based operations, SA, and United States based operations.. The group sells its products to department stores, perfumeries, specialty stores, and domestic and international wholesalers and distributors.
Executives
Philippe Benacin director, 10 percent owner, officer: President C/O INTER PARFUMS INC, 551 FIFTH AVE, 5TH FLOOR, NEW YORK NY 10176
Pelayo Frederic Garcia officer: Dir ExportSales InterParfumsSA
Gilbert Harrison director HARRISON GROUP, 745 FIFTH AVENUE, SUITE 514, NEW YORK NY 10151
Veronique Gabai-pinsky director C-O VERA WANG GROUP, 15 EAST 26TH STREET, NEW YORK NY 10010
Philippe Santi officer: Dir. of Finance INTER PARFUMS S A, 4 ROND POINT DES CHAMPS ELYSEES, PARIS I0 99999
Jean Madar director, 10 percent owner, officer: CEO JEAN PHILIPPE FRAGRANCES INC, 551 FIFTH AVE 15TH FLOOR, NEW YORK NY 10176
Gerard Kappauf director JUMEIRAH 1, 30TH C STREET, VILLA 76, DUBAI C0 500001
Russell Greenberg director, officer: Ex. VP and CFO INTER PARFUMS INC, 551 FIFTH AVE 15TH FLR, NEW YORK NY 10176
Michel D. Atwood director, officer: Chief Financial Officer 1113 YORK AVENUE, NEW YORK NY 10065
Francois Heilbronn director M M FRIEDRICH HEILBRONN & FISZER, 24 AVE MATIGNON, PARIS I0 99999
Torres Robert Bensoussan director 48 BOULEVARD RASPAIL, PARIS I0 99999
Patrick Choel director UNIVERSITE-82, 7 RUE DE TALLEYRAND, PARIS I0 75007
Henry B. Clarke officer: President Specialty Retail Div INTER PARFUMS, INC., 551 FIFTH AVENUE, NEW YORK NY 10176
Michel Dyens director MICHEL DYENS & CO, 17 AVENUE MONTAIGNE, PARIS I0 75008
Jean Levy director CHEZ AXCESS GROUPE, 8 RUE DE BERRI, PARIS I0 99999