Xpel Inc (XPEL)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 3.31 | 3.42 | 3.49 | 3.31 | 3.60 | 4.04 | 3.95 | 3.65 | 4.08 | 4.33 | 4.38 | 4.91 | 6.06 | 7.67 | 8.51 | 3.93 | 3.82 | 4.04 | 4.54 | 4.69 |
The inventory turnover ratio of Xpel Inc has shown fluctuation over the years, ranging from a high of 6.29 in June 2020 to a low of 2.14 in March 2024. This ratio indicates the number of times inventory is sold and replaced within a given period. The decreasing trend in the inventory turnover ratio suggests that Xpel Inc is taking longer to sell its inventory, which may result in holding excess or obsolete inventory.
The receivables turnover ratio, on the other hand, is not available in the data provided. This ratio measures how efficiently a company collects payments from its customers. The absence of this information makes it challenging to assess Xpel Inc's effectiveness in collecting outstanding receivables.
Similarly, the payables turnover ratio data is missing, which makes it difficult to evaluate how quickly Xpel Inc pays its suppliers. A higher payables turnover ratio typically indicates that a company is paying its suppliers quickly, while a lower ratio may suggest delayed payments.
The working capital turnover ratio shows the efficiency of Xpel Inc in utilizing its working capital to generate sales. The ratio has shown a decreasing trend over time, indicating that the company's ability to generate sales with its working capital has declined. This may be a cause for concern as it could potentially impact the company's liquidity and operational efficiency.
Overall, the analysis of Xpel Inc's activity ratios highlights areas where the company may need to further assess and improve its inventory management, accounts receivable collection, payables management, and utilization of working capital for generating sales.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 166.56 | 152.08 | 148.40 | 170.23 | 166.22 | 155.73 | 144.07 | 152.69 | 149.68 | 130.22 | 146.62 | 153.47 | 113.79 | 93.88 | 67.17 | 75.52 | 77.82 | 69.70 | 58.01 | 77.99 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Xpel Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- Xpel's DOH has shown fluctuations over the years, ranging from a low of 58.01 days in June 2020 to a high of 170.23 days in March 2024.
- The trend indicates an increase in inventory holding period from 2020 to 2024, with seasonal variations observed in certain periods.
- Higher DOH figures suggest a slower inventory turnover rate, which may result in higher carrying costs and potential obsolescence risks.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on DSO for Xpel Inc, indicating a lack of details to analyze the efficiency of accounts receivable collection.
- Without DSO data, it is challenging to assess the effectiveness of the company in converting credit sales into cash.
3. Number of Days of Payables:
- Similar to DSO, the data does not contain information on the number of days of payables for Xpel Inc, preventing an analysis of the company's payment period to suppliers.
- Payables data is crucial in evaluating the company's liquidity and ability to manage its trade credit effectively.
Overall, while the analysis of DOH provides insights into Xpel's inventory management efficiency, the lack of DSO and payables data limits a comprehensive evaluation of the company's overall activity ratios. Additional information on accounts receivable and payables would be necessary to conduct a thorough assessment of Xpel's working capital management and operational efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 22.95 | 22.07 | 10.98 | 24.94 | 11.43 | 24.57 | 11.37 | 27.44 | 12.76 | 31.93 | 33.77 | 15.46 | 14.20 | 13.29 |
| Total asset turnover | 1.47 | 1.53 | 1.56 | 1.55 | 1.53 | 1.63 | 1.64 | 1.63 | 1.68 | 1.68 | 1.56 | 1.48 | 1.61 | 1.91 | 2.04 | 1.91 | 1.90 | 1.97 | 2.04 | 2.17 |
The Fixed Asset Turnover ratio for Xpel Inc has shown some fluctuations over the years. It increased from 13.29 in March 2020 to 33.77 in December 2020, indicating that Xpel was generating $33.77 in sales for every dollar invested in fixed assets. However, the ratio declined in the following periods before stabilizing around 22-27 from March 2022 onwards, suggesting a slight decrease in efficiency in utilizing fixed assets to generate sales.
In contrast, the Total Asset Turnover ratio has been more consistent, hovering around 1.9 to 2.0 from December 2020 to June 2021, before declining steadily to 1.48 in March 2022 and then fluctuating slightly around 1.5 in the following periods till December 2024. This ratio signifies that Xpel generated $1.48 to $2.0 in sales for every dollar of total assets during these periods.
Overall, while the Fixed Asset Turnover ratio has shown more volatility, the Total Asset Turnover ratio indicates a relatively stable performance in utilizing both fixed and total assets efficiently to generate sales over the years.