Xpel Inc (XPEL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 252,041 | 193,362 | 161,015 | 83,840 | 51,601 |
| Total stockholders’ equity | US$ in thousands | 179,989 | 124,722 | 84,462 | 53,382 | 35,062 |
| Financial leverage ratio | 1.40 | 1.55 | 1.91 | 1.57 | 1.47 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $252,041K ÷ $179,989K
= 1.40
The financial leverage ratio for XPEL Inc has experienced some fluctuations over the past five years. In 2023, the ratio stood at 1.40, indicating that the company's level of debt funding relative to its equity has decreased compared to the previous year. This suggests that the company may be relying less on debt to finance its operations and investments.
Looking back over the past five years, we observe a peak in the financial leverage ratio in 2021 at 1.91, signaling a higher reliance on debt funding during that period. Subsequently, the ratio decreased to 1.57 in 2020, then further declined to 1.47 in 2019, before the recent uptick in 2023.
Overall, the fluctuations in the financial leverage ratio indicate varying levels of financial risk and capital structure adjustments by XPEL Inc. It is essential for investors and stakeholders to closely monitor these changes to understand the company's debt management strategies and their potential impact on overall financial health.