Xpel Inc (XPEL)

Payables turnover is a financial ratio that measures how efficiently a company is managing its trade payables by calculating the number of times a company pays off its average accounts payable balance during a specific period. A higher payables turnover ratio indicates that the company is repaying its suppliers quickly and efficiently.

Analyzing the payables turnover ratio of XPEL Inc over the past five years reveals fluctuations in the company's ability to manage its trade payables effectively. In 2023, the payables turnover ratio decreased to 9.65 from 11.45 in 2022, indicating a slight decline in the efficiency of paying off its creditors. However, the ratio is still relatively high, suggesting that XPEL is still efficiently managing its accounts payable.

Comparing the current ratio to earlier years, we see a notable increase from 6.62 in 2021 to 7.96 in 2020, followed by a decrease in 2019. The improvement in 2020 and subsequent decrease in 2021 may indicate changes in the company's payment terms or supplier relationships. The significant fluctuations in the payables turnover ratio over the past five years could be attributed to various factors such as changes in business operations, supplier negotiations, or industry dynamics.

Overall, while the current payables turnover ratio of XPEL Inc has decreased slightly in 2023, the company still appears to efficiently manage its trade payables. Further analysis of the underlying reasons for the fluctuations in the ratio may provide valuable insights into the company's financial management practices and supplier relationships.