Xpel Inc (XPEL)
Working capital 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 current assets | US$ in thousands | 146,454 | 106,821 | 79,028 | 62,777 | 36,281 |
| Total current liabilities | US$ in thousands | 36,472 | 27,402 | 36,268 | 21,200 | 11,786 |
| Working capital turnover | 3.59 | 4.05 | 6.05 | 3.81 | 5.30 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $395,365K ÷ ($146,454K – $36,472K)
= 3.59
The working capital turnover of XPEL Inc has fluctuated over the past five years, ranging from a low of 3.60 in 2023 to a high of 6.06 in 2021. This ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A higher turnover ratio suggests that the company is effectively managing its working capital and converting it into sales.
In 2021, the working capital turnover was at its peak of 6.06, indicating that XPEL Inc was able to generate sales 6.06 times using its working capital during that year. This suggests a high level of efficiency in working capital management. However, the ratio decreased in the following years, indicating a potential decrease in efficiency in utilizing working capital.
In 2023, the ratio dropped to 3.60, signaling a decline in the efficiency of working capital turnover compared to previous years. This decrease may be attributed to changes in the company's operational activities or financial management practices. It is essential for XPEL Inc to closely monitor and improve its working capital turnover to optimize its use of resources and drive revenue growth.