Xpel Inc (XPEL)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 225,455 | 179,989 | 124,722 | 84,462 | 53,383 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $225,455K
= 0.00
The debt-to-equity ratio of Xpel Inc over the past five years has remained consistently at 0.00, indicating that the company has been primarily funded by equity rather than debt during this period. This suggests that Xpel Inc has a low level of financial leverage and is not highly reliant on external borrowing to finance its operations or investments. A lower debt-to-equity ratio is generally considered favorable as it signifies lower financial risk and a stronger position in terms of solvency. However, it's important to note that while a 0.00 debt-to-equity ratio may indicate financial stability, it could also imply missed opportunities for leveraging debt for potential growth or tax advantages. Overall, Xpel Inc's consistent 0.00 debt-to-equity ratio indicates a conservative approach to capital structure management.