Xpel Inc (XPEL)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 45,489 | 48,561 | 47,325 | 48,033 | 52,800 | 49,187 | 48,849 | 45,010 | 41,380 | 39,226 | 34,239 | 32,523 | 31,567 | 31,452 | 29,729 | 23,517 | 18,281 | 16,803 | 14,698 | 13,730 |
| Total stockholders’ equity | US$ in thousands | 225,455 | 218,727 | 201,911 | 186,423 | 179,989 | 166,553 | 153,308 | 136,757 | 124,722 | 114,953 | 103,077 | 92,240 | 84,462 | 78,407 | 70,432 | 60,020 | 53,383 | 46,427 | 39,399 | 34,982 |
| ROE | 20.18% | 22.20% | 23.44% | 25.77% | 29.34% | 29.53% | 31.86% | 32.91% | 33.18% | 34.12% | 33.22% | 35.26% | 37.37% | 40.11% | 42.21% | 39.18% | 34.24% | 36.19% | 37.31% | 39.25% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $45,489K ÷ $225,455K
= 20.18%
Xpel Inc's return on equity (ROE) has shown a gradual decline over the past few years, starting at a robust 39.25% in March 2020 but decreasing to 20.18% by December 2024. This declining trend indicates that the company's ability to generate profit from its shareholder's equity has been diminishing over time.
While Xpel Inc's ROE was relatively stable in the range of 30-40% from 2020 to 2023, there was a more significant drop in 2024, with ROE falling below 30% for the first time. This could be a cause for concern as lower ROE may suggest inefficiencies in the company's operations or a decrease in financial health.
It is crucial for Xpel Inc to address the declining ROE trend and identify the factors contributing to this decrease. Management may need to reassess the company's capital structure, profitability, and overall operational efficiency to improve ROE and ensure sustainable growth in the future.