Xpel Inc (XPEL)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 395,365 | 322,029 | 258,624 | 158,362 | 129,807 |
| Property, plant and equipment | US$ in thousands | 16,980 | 14,203 | 9,898 | 4,706 | 4,015 |
| Fixed asset turnover | 23.28 | 22.67 | 26.13 | 33.65 | 32.33 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $395,365K ÷ $16,980K
= 23.28
The fixed asset turnover ratio for XPEL Inc has shown a fluctuating trend over the past five years. The ratio was 23.34 in 2023, slightly higher than the previous year's ratio of 22.81. This indicates that the company generated $23.34 in sales for every dollar invested in fixed assets in 2023.
In comparison to 2021 and 2022, the fixed asset turnover ratio decreased slightly in 2023 but remained at a relatively high level. This suggests that the company efficiently utilized its fixed assets to generate sales revenue during the year.
When looking back to 2020 and 2019, XPEL Inc experienced significantly higher fixed asset turnover ratios of 33.77 and 32.36, respectively. This indicates that the company was more efficient in utilizing its fixed assets to generate sales in those years compared to 2021, 2022, and 2023.
Overall, the fluctuation in XPEL Inc's fixed asset turnover ratio over the five-year period may indicate changes in the company's operational efficiency and effectiveness in utilizing its fixed assets to generate sales revenue. Further analysis and context regarding the company's strategic decisions and market conditions are necessary to fully understand the implications of these fluctuations.