Xpel Inc (XPEL)

Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its investment in fixed assets. Xpel Inc's fixed asset turnover has shown a decline over the years.

In 2020, Xpel Inc achieved a high fixed asset turnover ratio of 33.77, indicating that the company generated $33.77 in sales revenue for every $1 invested in fixed assets during that year. This high ratio suggests efficient utilization of fixed assets to drive sales.

However, in the subsequent years, the fixed asset turnover ratio decreased significantly. By the end of 2021, the ratio dropped to 11.37, and further decreased to 10.98 by the end of 2022. This decline indicates that Xpel Inc's fixed assets are not generating as much revenue as before, possibly due to decreased sales or inefficient asset utilization.

Unfortunately, no data is available for 2023 and 2024, so it is unclear whether the trend of declining fixed asset turnover continued or if there were any improvements in later years.

Overall, the decreasing trend in fixed asset turnover for Xpel Inc raises concerns about its ability to efficiently leverage its fixed asset investments to drive sales revenue. Further analysis and investigation into the company's operations and asset management practices may be needed to address these concerns and improve overall profitability.