Xpel Inc (XPEL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 58,047 | 61,083 | 59,595 | 60,843 | 66,545 | 63,166 | 62,870 | 58,003 | 53,108 | 50,540 | 43,972 | 41,352 | 39,863 | 38,918 | 36,965 | 29,433 | 23,370 | 21,078 | 18,333 | 17,164 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 25.75% | 27.93% | 29.52% | 32.64% | 36.97% | 37.93% | 41.01% | 42.41% | 42.58% | 43.97% | 42.66% | 44.83% | 47.20% | 49.64% | 52.48% | 49.04% | 43.78% | 45.40% | 46.53% | 49.07% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $58,047K ÷ ($—K + $225,455K)
= 25.75%
The return on total capital for Xpel Inc has shown a declining trend over the past few years. It started at a relatively high level of 49.07% as of March 31, 2020, then gradually decreased to 25.75% by December 31, 2024.
There was a fluctuation in the return on total capital over the periods, with some quarters showing slight improvements while others declining. The company experienced a significant drop in return on total capital between the year 2022 and 2024, indicating potential challenges in effectively utilizing its total capital to generate profits.
Overall, the decreasing trend in return on total capital may suggest that Xpel Inc needs to reassess its capital deployment strategies and consider ways to enhance the efficiency of its capital investments to improve profitability and financial performance in the future.