Xpel Inc (XPEL)
Working capital 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 current assets | US$ in thousands | 168,344 | 146,454 | 106,821 | 79,028 | 62,777 |
| Total current liabilities | US$ in thousands | 41,518 | 36,472 | 27,402 | 36,268 | 21,200 |
| Working capital turnover | 3.31 | 3.60 | 4.08 | 6.06 | 3.82 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $420,400K ÷ ($168,344K – $41,518K)
= 3.31
Xpel Inc's working capital turnover ratio has shown fluctuations over the years based on the provided data. The ratio increased from 3.82 in December 31, 2020, to 6.06 in December 31, 2021, indicating that the company was able to utilize its working capital more efficiently to generate sales during that period.
However, there was a decrease in the ratio to 4.08 in December 31, 2022, followed by a further decline to 3.60 in December 31, 2023. These decreases suggest a potential decrease in the company's ability to efficiently convert its working capital into sales.
In the most recent year, the working capital turnover ratio decreased to 3.31 in December 31, 2024, continuing the downward trend seen in the previous years. This may indicate a need for Xpel Inc to reassess its working capital management strategies to improve efficiency in utilizing its resources to generate sales.