Xpel Inc (XPEL)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 11,609 | 10,374 | 14,298 | 8,330 | 8,056 | 10,245 | 9,321 | 10,596 | 9,644 | 7,816 | 8,734 | 35,615 | 29,027 | 27,224 | 25,796 | 14,788 | 11,501 | 7,296 | 5,474 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 0 | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 11,786 | 12,775 | 13,468 |
| Cash ratio | 0.32 | 0.22 | 0.40 | 0.30 | 0.29 | 0.32 | 0.23 | 0.22 | 0.27 | 0.22 | 0.35 | 1.36 | 1.37 | 1.30 | 1.35 | 1.00 | 0.98 | 0.57 | 0.41 |
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 displayed some variability over the past few quarters, ranging from a low of 0.30 in Q1 2022 to a high of 0.54 in Q2 2023. This ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
A higher cash ratio indicates that the company has a greater proportion of its current liabilities covered by cash, which generally signifies a stronger liquidity position. On the other hand, a lower ratio could suggest potential liquidity concerns, especially if the company's cash reserves are insufficient to meet its short-term obligations.
It is important to note that while a high cash ratio is desirable for financial stability, excessively high levels of cash may also indicate that the company is not effectively utilizing its resources to generate returns. Conversely, a low cash ratio may indicate that the company is taking on too much short-term debt relative to its available cash.
Overall, the fluctuation in XPEL Inc's cash ratio over the quarters may be reflective of varying cash management strategies, changes in operating performance, or shifts in financial priorities. Further analysis of the company's financial statements and business operations would be necessary to fully evaluate the implications of these fluctuations in the cash ratio.