Xpel Inc (XPEL)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 0 | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 24,807 | 24,115 | 23,983 | 21,353 | 14,726 | 17,944 | 19,669 | 15,179 | 13,776 | 15,164 | 12,626 | 9,903 | 9,944 | 8,968 | 7,215 | 7,307 |
| 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 |
| Quick ratio | 1.00 | 0.74 | 1.08 | 1.07 | 0.83 | 0.89 | 0.72 | 0.55 | 0.65 | 0.66 | 0.85 | 1.74 | 1.84 | 1.73 | 1.73 | 1.49 |
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 eight quarters, indicating variations in the company's ability to meet its short-term obligations with its most liquid assets. In Q4 2023, the quick ratio was 1.10, showing an improvement compared to the previous quarter. This suggests that XPEL Inc had $1.10 in liquid assets available to cover each dollar of current liabilities, indicating a stronger short-term financial position.
The quick ratio was lowest in Q1 2022 at 0.63, signaling potential liquidity concerns as the company had only $0.63 of liquid assets for every dollar of current liabilities. This sharp decline from the previous quarter highlights the importance for XPEL Inc to manage its liquidity carefully.
Overall, XPEL Inc's quick ratio has demonstrated some volatility, with fluctuations above and below 1.00. While a quick ratio above 1.00 generally indicates a healthy liquidity position, investors and stakeholders should closely monitor the company's ability to maintain sufficient liquid assets to cover its short-term liabilities effectively.