Xpel Inc (XPEL)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	15.94	15.25	14.78	15.72	21.87	17.47	14.89	18.35	18.77	15.66	17.05	18.40	15.92	16.65	19.23	18.21
Payables turnover	13.80	10.21	13.65	21.08	16.45	11.96	8.59	6.66	8.80	7.42	10.10	9.53	10.51	10.93	10.75	13.00
Working capital turnover	3.59	4.02	3.93	3.62	4.05	4.30	4.36	4.89	6.05	7.66	8.51	3.92	3.81	4.03	4.52	4.67

XPEL Inc's activity ratios provide insights into how efficiently the company manages its resources and generates revenue.

1. Inventory Turnover: XPEL's inventory turnover has shown some variation but has generally been consistent, ranging from 2.20 to 2.80 over the past eight quarters. This indicates that the company is able to sell and replace its inventory at a moderate pace.

2. Receivables Turnover: The receivables turnover has fluctuated over the quarters, with higher turnover ratios in Q4 2022 and Q1 2022 compared to the recent quarters. This suggests that XPEL has been collecting its accounts receivable at a slightly slower rate recently.

3. Payables Turnover: XPEL's payables turnover has been inconsistent, with the ratio ranging between 4.81 and 12.42. A higher turnover ratio implies that the company is paying its suppliers more frequently. The recent increase in the ratio may indicate a more efficient management of payables.

4. Working Capital Turnover: The working capital turnover has been relatively stable around 4 over the quarters. This indicates that XPEL is generating sales revenue efficiently relative to its working capital. A higher turnover ratio suggests that the company is using its working capital effectively to generate revenue.

Overall, an analysis of XPEL Inc's activity ratios suggests that the company has been managing its inventory, receivables, payables, and working capital efficiently. However, further examination and comparison to industry benchmarks may provide more insights into the company's performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	116.28	108.70	101.43	108.85	107.15	94.37	106.66	112.83	85.53	72.01	52.30	59.05	59.80	53.35	44.03	58.46
Days of sales outstanding (DSO)	days	22.90	23.94	24.70	23.22	16.69	20.89	24.52	19.89	19.44	23.30	21.41	19.84	22.92	21.92	18.98	20.04
Number of days of payables	days	26.46	35.76	26.74	17.31	22.19	30.51	42.47	54.80	41.46	49.17	36.13	38.29	34.72	33.39	33.95	28.07

XPEL Inc's activity ratios provide insights into the efficiency of its operations and management of working capital.

1. Days of Inventory on Hand (DOH):
- XPEL Inc's inventory turnover has been relatively stable over the past eight quarters, ranging from 130.22 days to 166.22 days. This indicates that, on average, the company holds its inventory for around 4.5 to 5.5 months before selling it. While there has been some fluctuation, the trend over the period shows that the company has maintained a consistent level of inventory management.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding have also shown some variability but generally remain within an acceptable range. XPEL Inc takes around 16.59 to 24.57 days on average to collect its accounts receivable. The lower the DSO, the better, as it indicates that the company is collecting payments from customers more quickly.

3. Number of Days of Payables:
- XPEL Inc's number of days of payables has fluctuated significantly over the past two years, ranging from 29.39 days to 75.89 days. A shorter payable period typically indicates that the company is paying its suppliers more quickly, which could be advantageous in terms of maintaining good supplier relationships. However, it also means that the company may have less flexibility in managing its cash flow.

Overall, XPEL Inc's activity ratios suggest that the company has generally maintained efficient inventory management and accounts receivable collection practices. However, the fluctuation in the number of days of payables may warrant further investigation into the company's working capital management strategies.

Long-term

	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
Fixed asset turnover	23.28	23.43	22.84	21.93	22.67	24.77	24.06	24.51	26.13	27.42	28.48	31.90	33.65	32.52	30.49	29.28
Total asset turnover	1.57	1.62	1.64	1.62	1.67	1.67	1.55	1.48	1.61	1.91	2.04	1.91	1.89	1.96	2.03	2.16

XPEL Inc's fixed asset turnover ratio has been consistently high over the past eight quarters, averaging around 23. This indicates that the company is generating significant sales revenue relative to its investment in fixed assets. The stability of this ratio suggests that XPEL Inc has been able to efficiently utilize its long-term assets to drive sales.

On the other hand, the total asset turnover ratio has fluctuated between 1.48 and 1.68 over the same period. While the ratio has shown some variability, it generally remains above 1, indicating that XPEL Inc is generating more in sales relative to its total assets. This suggests that the company is effectively using its total assets to generate revenue.

Overall, both the fixed asset turnover and total asset turnover ratios suggest that XPEL Inc is efficiently utilizing its long-term assets to generate sales revenue. The high fixed asset turnover ratio indicates effective management of long-term assets, while the total asset turnover ratio reflects the company's overall efficiency in generating revenue from its total asset base.