Xpel Inc (XPEL)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 179,989 | 124,722 | 84,462 | 53,382 | 35,062 |
| Debt-to-capital ratio | 0.10 | 0.17 | 0.23 | 0.06 | 0.01 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $19,317K ÷ ($19,317K + $179,989K)
= 0.10
The debt-to-capital ratio of XPEL Inc has varied over the past five years, indicating fluctuations in the company's capital structure and leverage. In 2019, the ratio was at a low of 0.02, suggesting a conservative capital structure with minimal reliance on debt. However, there was a notable increase in 2021 when the ratio reached 0.23, indicating a higher proportion of debt in the company's capital structure relative to equity.
The ratio decreased in 2022 to 0.17 but then dropped further to 0.10 in 2023, which represents a return to a lower level of debt relative to total capital. This downward trend suggests that XPEL Inc may have actively managed its debt levels or undertaken deleveraging efforts to reduce financial risk and improve financial health.
Overall, the decreasing trend in the debt-to-capital ratio over the past two years indicates a potentially improved financial position for XPEL Inc, as the company appears to be reducing its reliance on debt financing and strengthening its capital structure. However, further analysis of the company's financial statements and industry benchmarks would be necessary to fully assess the implications of these changes.