Xpel Inc (XPEL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.08% | 39.60% | 35.83% | 34.11% | 33.52% |
| Operating profit margin | 16.94% | 16.75% | 15.51% | 14.76% | 13.16% |
| Pretax margin | 16.70% | 16.14% | 15.25% | 14.40% | 13.04% |
| Net profit margin | 13.35% | 12.85% | 12.21% | 11.54% | 10.77% |
XPEL Inc has shown a positive trend in profitability ratios over the past five years. The gross profit margin has consistently improved, increasing from 33.48% in 2019 to 40.98% in 2022. This indicates the company has been able to improve its efficiency in generating revenue after accounting for the cost of goods sold.
Similarly, the operating profit margin has also shown a steady increase over the same period, reflecting the company's ability to control its operating expenses and generate profit from its core business activities. The operating profit margin increased from 13.15% in 2019 to 16.90% in 2023.
Moreover, XPEL Inc's pretax margin and net profit margin have also shown an upward trajectory. The pretax margin increased from 13.05% in 2019 to 16.66% in 2023, while the net profit margin increased from 10.76% in 2019 to 13.32% in 2023. These improvements indicate the company's ability to efficiently manage its expenses and generate profit before and after taxes.
Overall, XPEL Inc's profitability ratios have been on an upward trend, demonstrating the company's effective cost management and ability to generate profit from its operations. This positive trend is a promising indication of the company's financial health and operational efficiency.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 26.57% | 27.89% | 24.91% | 27.87% | 33.11% |
| Return on assets (ROA) | 20.95% | 21.40% | 19.61% | 21.81% | 27.09% |
| Return on total capital | 33.76% | 35.41% | 36.28% | 40.48% | 48.15% |
| Return on equity (ROE) | 29.34% | 33.18% | 37.37% | 34.25% | 39.87% |
XPEL Inc has demonstrated strong profitability over the past five years based on the provided ratios.
- The Operating return on assets (Operating ROA) has ranged from 24.91% to 33.11% during this period, with a slight decrease in 2023 compared to the previous year. This ratio indicates how efficiently the company is generating operating profits from its assets.
- The Return on assets (ROA) has fluctuated between 19.61% and 27.09%, showing a similar trend to the Operating ROA. ROA measures the overall profitability of the company in relation to its total assets.
- The Return on total capital has ranged from 33.59% to 47.69%, reflecting the company's ability to generate profits from both equity and debt capital. The decrease in 2023 compared to the previous year suggests a potential change in the capital structure.
- The Return on equity (ROE) has shown a varying trend from 29.34% to 39.87%, indicating how well the company is utilizing shareholder equity to generate profits. The decrease in 2023 compared to the previous years could be attributed to changes in the company's financial leverage or profitability.
Overall, XPEL Inc has maintained solid profitability ratios over the past five years, showcasing its ability to efficiently utilize its assets and capital to generate returns for its stakeholders.