Xpel Inc (XPEL)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 420,400 | 396,293 | 323,993 | 259,263 | 158,924 |
| Total assets | US$ in thousands | 285,607 | 252,041 | 193,362 | 161,015 | 83,840 |
| Total asset turnover | 1.47 | 1.57 | 1.68 | 1.61 | 1.90 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $420,400K ÷ $285,607K
= 1.47
The total asset turnover ratio for Xpel Inc has shown some fluctuations over the past five years. It was at 1.90 in December 31, 2020, indicating that the company generated $1.90 in revenue for every dollar of total assets during that period.
Subsequently, the total asset turnover ratio decreased to 1.61 in December 31, 2021, then increased to 1.68 by December 31, 2022. However, in the following years, the ratio declined to 1.57 by December 31, 2023, and further dropped to 1.47 by December 31, 2024.
The decreasing trend in the total asset turnover ratio over the last two years may suggest that Xpel Inc is becoming less efficient in utilizing its assets to generate revenue. This could be due to various factors such as lower sales volumes, underutilization of assets, or potential inefficiencies in the company's operations. This trend warrants closer scrutiny to identify the underlying reasons and potential areas for improvement in the company's asset management and operational efficiency.