Xpel Inc (XPEL)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 420,400 | 418,411 | 408,236 | 400,556 | 396,294 | 369,237 | 356,318 | 337,971 | 323,993 | 315,644 | 294,415 | 279,261 | 259,263 | 237,738 | 215,332 | 182,402 | 158,924 | 149,812 | 139,307 | 133,595 |
| Total current assets | US$ in thousands | 168,344 | 158,721 | 147,906 | 152,932 | 146,454 | 138,038 | 125,655 | 120,312 | 106,821 | 104,642 | 107,566 | 104,011 | 79,028 | 65,994 | 50,295 | 72,549 | 62,777 | 57,957 | 49,821 | 43,257 |
| Total current liabilities | US$ in thousands | 41,518 | 36,520 | 31,031 | 31,821 | 36,472 | 46,545 | 35,396 | 27,630 | 27,402 | 31,815 | 40,419 | 47,098 | 36,268 | 34,987 | 25,000 | 26,109 | 21,200 | 20,900 | 19,108 | 14,785 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $420,400K ÷ ($168,344K – $41,518K)
= 3.31
The working capital turnover ratio for Xpel Inc has shown fluctuating trends over the past several quarters. The ratio measures how efficiently the company is utilizing its working capital to generate revenue.
From March 31, 2020 to June 30, 2021, the ratio exhibited a generally increasing trend, indicating improved efficiency in using working capital to generate sales. This peak at 8.51 on June 30, 2021 suggests a significant boost in revenue relative to working capital availability.
However, the ratio began to decline from September 30, 2021 onwards, indicating a potential decrease in efficiency in utilizing working capital. The ratio has since stabilized around the range of 3.31 to 4.69, showing that the company may be facing challenges in efficiently using its working capital to generate revenue compared to the earlier period.
Overall, the varying levels of the working capital turnover ratio for Xpel Inc reflect fluctuations in the company's efficiency in managing and deploying its working capital to support its operational activities and revenue generation.