Xpel Inc (XPEL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 11,609 | 8,056 | 9,644 | 29,027 | 11,501 |
| Short-term investments | US$ in thousands | — | — | 0 | — | — |
| Total current liabilities | US$ in thousands | 36,472 | 27,402 | 36,268 | 21,200 | 11,786 |
| Cash ratio | 0.32 | 0.29 | 0.27 | 1.37 | 0.98 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($11,609K
+ $—K)
÷ $36,472K
= 0.32
The cash ratio of XPEL Inc has shown some fluctuations over the past five years, ranging from 0.37 to 1.44. The cash ratio measures a company's ability to cover its current liabilities using only its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.
In 2019 and 2020, XPEL Inc had relatively high cash ratios of 1.18 and 1.44, respectively, indicating a strong liquidity position during those years. However, in 2021, the cash ratio dropped to 0.37, which may suggest a temporary decrease in the company's ability to cover its short-term obligations solely with cash reserves.
The stability of the cash ratio at 0.42 in both 2022 and 2023 could indicate a more consistent liquidity position in recent years. Overall, while the cash ratio has varied, XPEL Inc has generally maintained a reasonable level of liquidity to meet its short-term financial obligations. Further analysis of the company's cash flow management and overall financial health would provide a more comprehensive understanding of its liquidity position.