Xpel Inc (XPEL)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 45,489 | 52,800 | 41,381 | 31,567 | 18,282 |
| Total assets | US$ in thousands | 285,607 | 252,041 | 193,362 | 161,015 | 83,840 |
| ROA | 15.93% | 20.95% | 21.40% | 19.61% | 21.81% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $45,489K ÷ $285,607K
= 15.93%
Based on the data provided, Xpel Inc's return on assets (ROA) has shown a declining trend from 2020 to 2024. The ROA was at its peak in 2020 at 21.81%, indicating that the company generated a profit of 21.81 cents for every dollar of assets it holds. However, by the end of 2024, the ROA decreased to 15.93%, signaling a decrease in the company's ability to generate profits from its assets.
Although the ROA fluctuated slightly over the years, the overall trend indicates a decline in the company's efficiency in using its assets to generate earnings. This could be a concern for stakeholders as it suggests a potential decrease in profitability and overall performance of Xpel Inc in utilizing its assets effectively for generating returns. Further analysis into the reasons behind this decline in ROA would be necessary to identify and address the underlying issues impacting the company's asset management and profitability.