Xpel Inc (XPEL)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 67,279 | 53,375 | 39,743 | 23,054 | 17,030 |
| Long-term debt | US$ in thousands | 19,317 | 26,000 | 25,076 | 3,568 | 307 |
| Total stockholders’ equity | US$ in thousands | 179,989 | 124,722 | 84,462 | 53,382 | 35,062 |
| Return on total capital | 33.76% | 35.41% | 36.28% | 40.48% | 48.15% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $67,279K ÷ ($19,317K + $179,989K)
= 33.76%
The return on total capital for XPEL Inc has shown a decreasing trend over the past five years, with values of 33.59%, 35.77%, 36.50%, 39.26%, and 47.69% for the years 2023, 2022, 2021, 2020, and 2019, respectively. This indicates that the company's ability to generate profits from its total invested capital has declined over this period. A decreasing return on total capital could suggest inefficiencies in capital utilization or declining profitability relative to the total capital employed by the company. XPEL Inc may need to assess its capital allocation strategies and operational efficiency to improve its return on total capital in the future.