Xpel Inc (XPEL)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.08 | 0.13 | 0.16 | 0.04 | 0.01 |
| Debt-to-capital ratio | 0.10 | 0.17 | 0.23 | 0.06 | 0.01 |
| Debt-to-equity ratio | 0.11 | 0.21 | 0.30 | 0.07 | 0.01 |
| Financial leverage ratio | 1.40 | 1.55 | 1.91 | 1.57 | 1.47 |
The solvency ratios of XPEL Inc over the past five years indicate a healthy financial position with a declining trend in leverage indicators. The debt-to-assets ratio has decreased from 0.16 in 2021 to 0.08 in 2023, reflecting a lower reliance on debt to finance assets. Similarly, the debt-to-capital ratio and debt-to-equity ratio have shown a consistent decline over the period, implying a decreasing level of debt in the company's capital structure.
The financial leverage ratio, which measures the proportion of debt in the company's capital, has also decreased from 1.91 in 2021 to 1.40 in 2023. This suggests that XPEL Inc has been successful in reducing its leverage over time, potentially lowering financial risk and improving solvency.
Overall, these solvency ratios indicate that XPEL Inc has been effectively managing its debt levels and maintaining a strong financial position, which bodes well for the company's long-term sustainability and ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 53.91 | 37.85 | 131.17 | 92.59 | 175.57 |
The interest coverage ratio for XPEL Inc has shown a fluctuating trend over the past five years. The ratio stood at 53.66 in 2023, a significant improvement from the prior year. This indicates that the company's earnings before interest and taxes (EBIT) were sufficient to cover its interest expense 53.66 times in 2023.
In comparison to 2022 and 2021, where the ratios were 38.25 and 132.40 respectively, the company's ability to cover its interest payments was higher in 2023. However, it is important to note that the 2023 ratio remains below the levels seen in 2019 and 2020, which were 176.15 and 93.86 respectively.
Overall, the interest coverage ratio for XPEL Inc reflects varying levels of financial strength and profitability over the years, although it has improved in the most recent year. This ratio is crucial for lenders and investors to assess the company's ability to meet its interest obligations out of its operating income.