Xpel Inc (XPEL)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 57,774 | 67,279 | 53,937 | 40,116 | 23,370 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 225,455 | 179,989 | 124,722 | 84,462 | 53,383 |
| Return on total capital | 25.63% | 37.38% | 43.25% | 47.50% | 43.78% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $57,774K ÷ ($—K + $225,455K)
= 25.63%
The return on total capital for Xpel Inc has shown a positive trend over the years, starting at 43.78% on December 31, 2020, and increasing to 47.50% by December 31, 2021. However, there was a slight decline in the return on total capital to 43.25% on December 31, 2022, followed by a more significant drop to 37.38% by December 31, 2023. The most notable decrease occurred by December 31, 2024, where the return on total capital stood at 25.63%.
Overall, Xpel Inc's return on total capital has fluctuated during the period under review, indicating some variability in the company's efficiency in generating returns from its total capital base. Further analysis would be necessary to understand the factors driving these fluctuations and to assess the company's capital allocation strategies.