Xpel Inc (XPEL)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 166.56 | 152.08 | 148.40 | 170.23 | 166.22 | 155.73 | 144.07 | 152.69 | 149.68 | 130.22 | 146.62 | 153.47 | 113.79 | 93.88 | 67.17 | 75.52 | 77.82 | 69.70 | 58.01 | 77.99 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 166.56 | 152.08 | 148.40 | 170.23 | 166.22 | 155.73 | 144.07 | 152.69 | 149.68 | 130.22 | 146.62 | 153.47 | 113.79 | 93.88 | 67.17 | 75.52 | 77.82 | 69.70 | 58.01 | 77.99 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 166.56 + — – —
= 166.56
The cash conversion cycle of Xpel Inc has shown some fluctuations over the past few years. Initially, the company's cash conversion cycle was around 70 to 80 days, indicating a moderate efficiency in converting its resources into cash. However, as of December 31, 2022, the cash conversion cycle increased significantly to 149.68 days, and further increased to 166.22 days by December 31, 2023.
This prolonged cash conversion cycle suggests that the company may be facing challenges in efficiently managing its cash flows, inventory turnover, and accounts payable and receivable. A longer cash conversion cycle can indicate that the company is taking longer to generate cash from its operations, which could potentially lead to liquidity issues and working capital constraints.
It is essential for Xpel Inc to closely monitor and analyze the components of its cash conversion cycle to identify areas for improvement and implement strategies to optimize its working capital management. By effectively managing its cash conversion cycle, the company can enhance its liquidity position and overall financial performance.