Xpel Inc (XPEL)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 4.05 | 4.35 | 4.77 | 4.81 | 4.02 | 2.97 | 3.55 | 4.35 | 3.90 | 3.29 | 2.66 | 2.21 | 2.18 | 1.89 | 2.01 | 2.78 | 2.96 | 2.77 | 2.61 | 2.93 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $168,344K ÷ $41,518K
= 4.05
Xpel Inc's current ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The current ratio measures the company's ability to cover its short-term obligations with its current assets.
From March 2020 to June 2021, the current ratio remained above 2, indicating the company had more than enough current assets to cover its short-term liabilities. However, there was a notable decrease in the current ratio in the second quarter of 2021, dropping to 2.01, and continued to decline in the following quarters.
From September 2021 to March 2024, the current ratio fluctuated between 1.89 and 4.81. The ratio exceeded 3 from September 2022 to December 2024, indicating a significant increase in the company's ability to cover its short-term liabilities with current assets.
The upward trend in the current ratio from March 2023 to June 2024 suggests that Xpel Inc's liquidity position improved during this period. A current ratio above 1 is generally considered healthy, and a ratio above 2 is considered optimal as it indicates the company is in a strong position to meet its short-term obligations.
Overall, the current ratio analysis indicates that Xpel Inc has maintained a relatively healthy liquidity position with fluctuations but generally maintaining a ratio above 2, showing the company's ability to cover its short-term liabilities effectively. The recent increases in the current ratio suggest an improvement in the company's liquidity management.