Xpel Inc (XPEL)
Inventory turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 334,339 | 310,455 | 297,658 | 283,653 | 274,485 | 268,379 | 253,725 | 240,970 | 221,648 | 200,491 | 179,543 | 153,955 | 136,511 | 129,717 | 121,916 | 117,328 | |||
| Inventory | US$ in thousands | 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 | 15,141 | 16,428 | 15,305 |
| Inventory turnover | 3.14 | 3.36 | 3.60 | 3.35 | 3.41 | 3.87 | 3.42 | 3.24 | 4.27 | 5.07 | 6.98 | 6.18 | 6.10 | 6.84 | 8.29 | 6.24 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $334,339K ÷ $106,509K
= 3.14
Inventory turnover is a vital financial ratio that measures how quickly a company is able to sell its inventory within a specific period. XPEL Inc's inventory turnover has shown some fluctuations over the past eight quarters. The average inventory turnover for the latest four quarters (Q1 2023 to Q4 2023) stands at 2.39.
The trend indicates a slight decrease in inventory turnover from Q2 2023 to Q4 2023, with the lowest turnover rate recorded in Q4 2023 at 2.20. Despite this decline, the company's inventory turnover remains relatively stable over the period under review.
It is essential for XPEL Inc to closely monitor its inventory turnover rate to ensure efficient management of inventory levels. A lower turnover rate may suggest excess inventory or slowing sales, which could potentially impact the company's liquidity and profitability. On the other hand, a consistently high turnover rate may indicate effective inventory management and faster sales cycles, improving cash flow and overall financial performance.