Xpel Inc (XPEL)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 22,087 | 20,986 | 14,984 | 8,614 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.53 | 0.57 | 0.48 | 0.27 | 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($22,087K
+ $—K
+ $—K)
÷ $41,518K
= 0.53
The quick ratio of Xpel Inc, a measure of the company's ability to meet its short-term obligations with its most liquid assets, has fluctuated over the years. From March 2020 to June 2021, the quick ratio ranged from 1.00 to 1.36, indicating a healthy ability to cover current liabilities with quick assets. However, starting from June 2021, the quick ratio experienced a significant decline, dropping to as low as 0.22 by September 2021.
This sharp decrease in the quick ratio suggests that Xpel Inc may have faced challenges in maintaining sufficient liquid assets to meet its short-term obligations during that period. While the quick ratio improved slightly in the following quarters, it remained below the ideal threshold of 1.00 in most cases, indicating a potential liquidity constraint.
It is important for Xpel Inc to closely monitor and manage its liquidity position to ensure that it can fulfill its short-term financial commitments and withstand unexpected financial pressures. Further analysis and action may be needed to improve the company's liquidity position and strengthen its ability to weather financial uncertainties.