Xpel Inc (XPEL)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 395,365 | 322,029 | 258,624 | 158,362 | 129,807 |
| Total assets | US$ in thousands | 252,041 | 193,362 | 161,015 | 83,840 | 51,601 |
| Total asset turnover | 1.57 | 1.67 | 1.61 | 1.89 | 2.52 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $395,365K ÷ $252,041K
= 1.57
The total asset turnover ratio measures the efficiency of XPEL Inc in generating sales revenue relative to its total assets. A higher ratio indicates that the company is better at utilizing its assets to generate revenue.
Based on the data provided:
- The total asset turnover ratio has been fluctuating over the past five years, ranging from 1.57 in 2023 to 2.52 in 2019.
- In 2019, XPEL Inc achieved the highest total asset turnover ratio of 2.52, indicating a more efficient use of assets to generate sales.
- However, there has been a declining trend in the ratio in the subsequent years, with lower values recorded in 2020, 2021, and 2023.
- The ratio of 1.57 in 2023 suggests that the company generated $1.57 in revenue for every $1 of total assets in that year, demonstrating a slight decrease in efficiency compared to the previous years.
Overall, while XPEL Inc has shown variations in its total asset turnover ratio over the years, it is important for the company to focus on optimizing its asset utilization to improve efficiency and generate higher sales relative to its asset base.