Xpel Inc (XPEL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.19% | 40.98% | 39.36% | 35.75% | 33.99% |
| Operating profit margin | 14.07% | 16.90% | 16.65% | 15.47% | 14.71% |
| Pretax margin | 13.51% | 16.66% | 16.04% | 15.21% | 14.35% |
| Net profit margin | 10.82% | 13.32% | 12.77% | 12.18% | 11.50% |
Xpel Inc has shown a consistent improvement in its gross profit margin over the past five years, starting at 33.99% in December 31, 2020, and steadily increasing to 42.19% by December 31, 2024. This indicates the company's ability to effectively manage its production costs and generate higher revenues.
The operating profit margin of Xpel Inc has also shown a generally positive trend from 14.71% in December 31, 2020, to 16.90% in December 31, 2023. However, there was a slight decline to 14.07% by December 31, 2024. This may suggest fluctuations in operating expenses or potentially a change in the company's operational efficiency.
In terms of pretax margin, Xpel Inc has displayed a consistent growth pattern over the years, rising from 14.35% in December 31, 2020, to 16.66% by December 31, 2023. However, there was a decline to 13.51% in December 31, 2024, indicating a possible increase in taxes or other factors affecting pre-tax earnings.
The net profit margin of Xpel Inc has generally improved from 11.50% in December 31, 2020, to 13.32% by December 31, 2023. However, there was a decrease to 10.82% in December 31, 2024. This decline may indicate increased costs or other factors impacting net profitability.
Overall, Xpel Inc has shown strong profitability ratios, with improvements in gross profit margin and operating profit margin over the years. However, the decline in pretax and net profit margins in the most recent year may warrant further investigation into the factors influencing the company's profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.71% | 26.57% | 27.89% | 24.91% | 27.87% |
| Return on assets (ROA) | 15.93% | 20.95% | 21.40% | 19.61% | 21.81% |
| Return on total capital | 25.63% | 37.38% | 43.25% | 47.50% | 43.78% |
| Return on equity (ROE) | 20.18% | 29.34% | 33.18% | 37.37% | 34.25% |
Xpel Inc's profitability ratios indicate a generally positive trend over the years, though with some fluctuations.
1. Operating return on assets (Operating ROA) has remained relatively high, ranging from 24.91% to 27.89% over the period. This ratio shows the company's operating income generated per dollar of assets, reflecting efficient asset utilization.
2. Return on assets (ROA) has also been healthy, though slightly lower than the operating ROA, ranging from 15.93% to 21.81%. This ratio indicates the company's overall profitability relative to its total assets.
3. Return on total capital has shown a decreasing trend, declining from 47.50% in 2021 to 25.63% in 2024. This ratio evaluates the return earned on all capital invested in the business, including debt and equity.
4. Return on equity (ROE) follows a similar pattern, decreasing from 37.37% in 2021 to 20.18% in 2024. ROE measures the return earned on shareholders' equity, reflecting the company's ability to generate profits from shareholders' investments.
Overall, Xpel Inc's profitability ratios demonstrate strong operational performance in terms of asset utilization, but there seems to be a decreasing trend in returns on capital and equity, which may require further analysis to understand the underlying factors influencing the company's profitability.