Xpel Inc (XPEL)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.27 | 1.40 | 1.55 | 1.91 | 1.57 |
Xpel Inc has consistently maintained a strong solvency position based on its solvency ratios.
The Debt-to-assets ratio for Xpel Inc has been consistently low at 0.00 across the years 2020, 2021, 2022, 2023, and 2024. This indicates that the company has not relied heavily on debt to finance its assets, signaling a low financial risk related to its asset base.
Similarly, the Debt-to-capital ratio has also been stable at 0.00 for the same period. This emphasizes that the company has not extensively leveraged its capital structure with debt, strengthening its financial stability.
The Debt-to-equity ratio has also remained at 0.00 throughout the years, indicating that the company has not accumulated significant debt in relation to its equity. This demonstrates a strong financial position in terms of debt obligations relative to shareholder equity.
Furthermore, the Financial leverage ratio shows a decreasing trend from 1.57 in 2020 to 1.27 in 2024. This declining trajectory indicates an improving ability to cover interest expenses with operating income and highlights the company's efficient use of debt to generate earnings.
Overall, Xpel Inc's solvency ratios suggest a conservative approach to managing debt and a solid financial footing, which bodes well for its long-term financial health and stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 58.01 | 53.91 | 38.25 | 132.40 | 93.86 |
Based on the provided data for Xpel Inc's interest coverage ratio over the years, we observe the following trends:
- As of December 31, 2020, the interest coverage ratio stood at 93.86, indicating that the company generated 93.86 times more operating income than the interest expenses during that period. This suggests a strong ability to meet interest payments comfortably.
- By December 31, 2021, the interest coverage ratio improved further to 132.40, reflecting an even higher level of financial strength and solvency. The company continued to generate substantial operating income relative to its interest obligations.
- However, there was a notable decline in the interest coverage ratio by December 31, 2022, dropping to 38.25. This decrease could potentially signal a reduction in the company's ability to cover its interest expenses from its operating earnings.
- Subsequently, the interest coverage ratio increased to 53.91 by December 31, 2023, indicating a slight improvement in the company's ability to meet its interest payments. The ratio remained below the levels seen in the previous years but showed some recovery.
- As of December 31, 2024, the interest coverage ratio rose to 58.01, demonstrating a further improvement in Xpel Inc's ability to cover its interest costs. While the ratio remained below the levels seen in 2021, it suggests a strengthening financial position in terms of servicing debt obligations.
In conclusion, the analysis of Xpel Inc's interest coverage ratio indicates fluctuations over the years, with periods of both strength and potential vulnerability. It is essential for stakeholders to monitor these trends closely to assess the company's financial health and its ability to manage interest expenses effectively.