Xpel Inc (XPEL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 225,455 | 179,989 | 124,722 | 84,462 | 53,383 |
| ROE | 20.18% | 29.34% | 33.18% | 37.37% | 34.25% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $45,489K ÷ $225,455K
= 20.18%
Based on the provided data, Xpel Inc's return on equity (ROE) has shown a fluctuating trend over the years. The ROE increased from 34.25% as of December 31, 2020, to 37.37% as of December 31, 2021, indicating an improvement in the company's ability to generate profit from shareholders' equity.
However, there was a slight decrease in ROE to 33.18% as of December 31, 2022, followed by a more notable decline to 29.34% as of December 31, 2023. This downward trend may suggest a decrease in the company's efficiency in utilizing its equity to generate earnings during those periods.
The most significant drop occurred by December 31, 2024, with the ROE plummeting to 20.18%. This substantial decrease could indicate challenges Xpel Inc faced in maintaining profitability and efficiency in utilizing shareholders' equity in that particular year.
Overall, the trend in Xpel Inc's ROE shows varying levels of performance over the years, with both improvements and declines. It would be essential for stakeholders to further investigate the factors influencing these fluctuations to assess the company's overall financial health and sustainability.