Xpel Inc (XPEL)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Operating income (ttm)	US$ in thousands	66,975	63,596	63,274	58,832	53,938	51,621	44,681	41,604	40,114	38,918	36,965	29,433	23,370	21,012	18,267	17,098
Total assets	US$ in thousands	252,041	226,776	216,661	207,667	193,362	188,258	189,056	188,261	161,015	124,403	105,373	95,339	83,840	76,197	68,173	61,691	51,601	47,406	43,349
Operating ROA		26.57%	28.04%	29.20%	28.33%	27.89%	27.42%	23.63%	22.10%	24.91%	31.28%	35.08%	30.87%	27.87%	27.58%	26.80%	27.72%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $66,975K ÷ $252,041K
= 26.57%

XPEL Inc's operating return on assets (operating ROA) has shown a positive trend over the past eight quarters, indicating the company's ability to generate operating income relative to its total assets. The operating ROA has consistently increased from 22.10% in Q1 2022 to 29.20% in Q2 2023, with slight fluctuations along the way. This suggests that XPEL Inc has been effectively utilizing its assets to generate operating profits.

The upward trend in operating ROA reflects the company's operational efficiency and profitability. It indicates that XPEL Inc has been able to effectively manage its operations and generate higher returns on its assets over time. This improvement is a positive sign for investors and stakeholders, as it demonstrates the company's ability to generate profits from its core activities.

Overall, the increasing trend in XPEL Inc's operating ROA suggests that the company is on a path of sustainable growth and profitability, showcasing its ability to generate operating income efficiently relative to its asset base.