Xpel Inc (XPEL)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 52,800 | 49,187 | 48,849 | 45,010 | 41,380 | 39,226 | 34,239 | 32,523 | 31,567 | 31,453 | 29,730 | 23,518 | 18,282 | 16,803 | 14,698 | 13,730 | |||
| Total stockholders’ equity | US$ in thousands | 179,989 | 166,553 | 153,308 | 136,757 | 124,722 | 114,953 | 103,077 | 92,242 | 84,462 | 78,407 | 70,432 | 60,020 | 53,382 | 46,427 | 39,399 | 34,982 | 35,062 | 30,247 | 25,881 |
| ROE | 29.34% | 29.53% | 31.86% | 32.91% | 33.18% | 34.12% | 33.22% | 35.26% | 37.37% | 40.12% | 42.21% | 39.18% | 34.25% | 36.19% | 37.31% | 39.25% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $52,800K ÷ $179,989K
= 29.34%
To analyze XPEL Inc's return on equity (ROE) based on the provided data, we observe a consistent trend of decreasing ROE over the past eight quarters. The ROE figures have gradually declined from 35.26% in Q1 2022 to 29.34% in Q4 2023. This decline could indicate various factors affecting the company's profitability and efficiency in generating returns for its shareholders.
A high ROE generally signifies that a company efficiently utilizes its equity to generate profits. However, the decreasing trend in XPEL Inc's ROE over the specified quarters may imply a potential decline in the company's profitability or its ability to generate returns compared to its equity base.
It is advisable for stakeholders and investors to further investigate the reasons behind this declining trend in ROE. Possible factors contributing to this trend could include changes in the company's operating efficiency, profit margins, debt levels, or overall business strategy. Additional financial analysis and context around XPEL Inc's operational performance would be essential to gain a comprehensive understanding of the dynamics influencing its ROE.