Xpel Inc (XPEL)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 19,317 | 26,000 | 25,076 | 3,568 | 307 |
| Total assets | US$ in thousands | 252,041 | 193,362 | 161,015 | 83,840 | 51,601 |
| Debt-to-assets ratio | 0.08 | 0.13 | 0.16 | 0.04 | 0.01 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $19,317K ÷ $252,041K
= 0.08
The debt-to-assets ratio of XPEL Inc has shown fluctuations over the past five years. In 2023, the ratio decreased to 0.08 from 0.13 in 2022, indicating a lower level of debt relative to total assets. This may suggest improved financial stability and reduced financial risk for the company.
Compared to 2021 and 2020 when the ratio was 0.16 and 0.07 respectively, the decrease in 2023 indicates a positive trend towards lower dependency on debt financing. However, it is worth noting that in 2019, the ratio was notably lower at 0.01, suggesting a higher proportion of assets funded through equity rather than debt.
Overall, the decreasing trend in the debt-to-assets ratio of XPEL Inc from 2020 to 2023 reflects a potential shift towards a more conservative and sustainable capital structure, which may enhance the company's financial health and resilience in the long term.