Xpel Inc (XPEL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 11,609 | 8,056 | 9,644 | 29,027 | 11,501 |
| Short-term investments | US$ in thousands | — | — | 0 | — | — |
| Receivables | US$ in thousands | 24,807 | 14,726 | 13,776 | 9,944 | 7,247 |
| Total current liabilities | US$ in thousands | 36,472 | 27,402 | 36,268 | 21,200 | 11,786 |
| Quick ratio | 1.00 | 0.83 | 0.65 | 1.84 | 1.59 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($11,609K
+ $—K
+ $24,807K)
÷ $36,472K
= 1.00
The quick ratio of XPEL Inc has fluctuated over the past five years, ranging from 0.75 to 1.91. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities. XPEL's quick ratio has generally been above 1 in the last five years, indicating a strong ability to meet short-term obligations. However, there was a noticeable decrease in the quick ratio in 2021 compared to the previous and subsequent years, which may suggest a lower level of liquidity relative to its current liabilities during that period. Overall, XPEL Inc has demonstrated a relatively stable liquidity position over the years, with the quick ratio hovering around or above 1.