Xpel Inc (XPEL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 67,280 | 63,446 | 63,150 | 58,283 | 53,375 | 50,536 | 43,819 | 41,262 | 39,741 | 38,900 | 37,095 | 29,496 | 23,053 | 20,694 | 17,807 | 16,644 | |||
| Long-term debt | US$ in thousands | 19,317 | 0 | 13,000 | 28,000 | 26,000 | 26,000 | 32,000 | 33,000 | 25,076 | 155 | 239 | 2,917 | 3,568 | 4,193 | 4,819 | 6,853 | 307 | 399 | 502 |
| 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 |
| Return on total capital | 33.76% | 38.09% | 37.97% | 35.38% | 35.41% | 35.85% | 32.44% | 32.95% | 36.28% | 49.52% | 52.49% | 46.87% | 40.48% | 40.88% | 40.27% | 39.78% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $67,280K ÷ ($19,317K + $179,989K)
= 33.76%
The return on total capital for XPEL Inc has shown a consistent and relatively strong performance over the past eight quarters, ranging from 33.04% to 38.18%. This metric reflects the company's ability to generate earnings from both its equity and debt investments relative to the total capital employed. The gradual increase in return on total capital from Q1 2022 through Q3 2023 indicates an improvement in the company's efficiency in utilizing its capital to generate profits. Overall, XPEL Inc has demonstrated a healthy level of return on total capital, which is a positive sign for the company's financial performance and efficiency in capital allocation.