Xpel Inc (XPEL)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 22,087 | 11,609 | 8,056 | 9,644 | 29,027 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 41,518 | 36,472 | 27,402 | 36,268 | 21,200 |
| Cash ratio | 0.53 | 0.32 | 0.29 | 0.27 | 1.37 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($22,087K
+ $—K)
÷ $41,518K
= 0.53
The cash ratio of Xpel Inc has shown varying trends over the past five years.
In December 2020, the cash ratio was relatively high at 1.37, indicating that the company had enough cash and cash equivalents to cover 137% of its current liabilities. This suggests a strong liquidity position.
However, there was a significant decrease in the cash ratio to 0.27 by December 2021. This sharp decline may raise concerns about the company's ability to meet its short-term obligations solely with its available cash resources.
Over the following years, the cash ratio improved slightly to 0.29 in December 2022, 0.32 in December 2023, and further to 0.53 in December 2024. While the upward trend shows some recovery in liquidity, the cash ratio still indicates that the company may face challenges in covering its current liabilities with cash alone.
Overall, the fluctuating cash ratio of Xpel Inc suggests the need for careful cash management to ensure the company maintains sufficient liquidity to meet its financial obligations effectively.