Xpel Inc (XPEL)

Inventory turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cost of revenue (ttm) US$ in thousands 243,040 243,822 240,034 236,225 233,879 216,708 209,552 202,216 196,481 194,489 184,571 177,153 166,586 153,791 139,810 120,388 104,900 99,290 92,542 87,943
Inventory US$ in thousands 110,904 101,592 97,591 110,171 106,509 92,458 82,714 84,594 80,575 69,388 74,142 74,487 51,936 39,554 25,728 24,909 22,364 18,961 14,707 18,792
Inventory turnover 2.19 2.40 2.46 2.14 2.20 2.34 2.53 2.39 2.44 2.80 2.49 2.38 3.21 3.89 5.43 4.83 4.69 5.24 6.29 4.68

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $243,040K ÷ $110,904K
= 2.19

The inventory turnover of Xpel Inc has shown fluctuating trends over the years based on the provided data.

The inventory turnover ratio measures how efficiently a company manages its inventory by evaluating how many times the inventory is sold and replaced over a specific period. A higher inventory turnover ratio typically indicates that a company is efficiently managing its inventory levels and is selling products quickly.

From March 31, 2020, to June 30, 2021, Xpel Inc experienced a gradual increase in the inventory turnover ratio, reaching its peak at 6.29 on June 30, 2020. This period suggests an improvement in inventory management and sales efficiency.

However, from September 30, 2021, to December 31, 2024, the inventory turnover ratio trended downwards, indicating a potential slowdown in inventory turnover. The ratio declined from 5.43 on June 30, 2021, to 2.19 on December 31, 2024.

A declining inventory turnover ratio could signal that Xpel Inc is holding onto excess inventory or facing challenges in selling goods quickly. This situation may result in increased carrying costs and potential obsolescence risks.

Overall, the decreasing trend in Xpel Inc's inventory turnover ratio from June 30, 2021, to December 31, 2024, requires careful monitoring to assess the impact on the company's financial performance and operational efficiency.