Xpel Inc (XPEL)

Short-term

Turnover ratios

Based on the provided data for Xpel Inc, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times it sells and replaces its inventory during a period.
- Xpel Inc's inventory turnover has been declining from 4.69 in 2020 to 2.19 in 2024. This indicates that the company is selling its inventory at a slower rate over the years, which may suggest issues with inventory management or potential overstocking.

2. Receivables Turnover:
- Receivables turnover ratio shows how well a company is collecting its accounts receivable during a specific period.
- The data provided shows that receivables turnover information is not available for the years 2020 to 2024. This lack of data makes it difficult to assess how efficiently Xpel Inc is collecting payments from its customers.

3. Payables Turnover:
- Payables turnover ratio helps in understanding how many times a company pays its suppliers during a period.
- Similar to receivables turnover, the data indicates that payables turnover information is not available for the years 2020 to 2024. Without this information, it is challenging to evaluate Xpel Inc's payment practices to its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio shows how effectively a company utilizes its working capital to generate revenue.
- Xpel Inc's working capital turnover ratio has fluctuated between 3.31 and 6.06 from 2020 to 2024. A higher ratio indicates better efficiency in using working capital to generate revenue, and the fluctuation suggests changes in how effectively the company is using its working capital over the years.

In conclusion, based on the activity ratios provided, Xpel Inc shows some concerning trends in inventory turnover, while limited data availability for receivables and payables turnover hinders a comprehensive assessment of the company's efficiency in managing its accounts receivables and payables. The fluctuation in working capital turnover indicates changes in how efficiently the company is utilizing its working capital to generate revenue over the years.

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Average number of days

Xpel Inc's Days of Inventory on Hand (DOH) has shown an increasing trend over the years, indicating that the company is taking longer to turn its inventory into sales. The DOH has risen from 77.82 days in December 2020 to 166.56 days by December 2024. This suggests a potential inefficiency in managing inventory levels or slowing demand for Xpel's products.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available for analysis, as the values are not provided for any of the years. Without this information, we cannot assess Xpel's collection efficiency in converting its accounts receivable into cash or its payment practices with suppliers.

In conclusion, Xpel Inc's increasing Days of Inventory on Hand raises concerns about its inventory management efficiency and potentially signals slowing sales turnover. Further information on Days of Sales Outstanding and Number of Days of Payables would provide a more complete picture of the company's working capital management and overall operational effectiveness.

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Long-term

Xpel Inc's fixed asset turnover ratio has shown a decreasing trend over the years, declining from 33.77 in 2020 to 10.98 in 2022. This indicates that the company is generating less revenue relative to its investment in fixed assets. The significant drop in fixed asset turnover suggests that Xpel may not be efficiently utilizing its fixed assets to generate sales.

In terms of total asset turnover, Xpel's ratio has also experienced a decline over the years, decreasing from 1.90 in 2020 to 1.47 in 2024. This indicates that the company's ability to generate sales from its total assets has weakened. The decreasing trend in total asset turnover may signal inefficiencies in the company's overall asset management and utilization.

Overall, the decreasing trends in both fixed asset turnover and total asset turnover ratios suggest that Xpel Inc may be facing challenges in efficiently utilizing its assets to drive sales growth. The company may need to review its asset management strategies to improve operational efficiency and enhance productivity.