Xpel Inc (XPEL)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Total assets	US$ in thousands	252,041	226,776	216,661	207,667	193,362	188,258	189,056	188,261	161,015	124,403	105,373	95,339	83,840	76,197	68,173	61,691	51,601	47,406	43,349
Total stockholders’ equity	US$ in thousands	179,989	166,553	153,308	136,757	124,722	114,953	103,077	92,242	84,462	78,407	70,432	60,020	53,382	46,427	39,399	34,982	35,062	30,247	25,881
Financial leverage ratio		1.40	1.36	1.41	1.52	1.55	1.64	1.83	2.04	1.91	1.59	1.50	1.59	1.57	1.64	1.73	1.76	1.47	1.57	1.67

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $252,041K ÷ $179,989K
= 1.40

The financial leverage ratio of XPEL Inc has shown a fluctuating trend over the past eight quarters. The ratio decreased from 2.04 in Q1 2022 to 1.40 in Q4 2023, indicating a reduction in the company's reliance on debt financing to sustain its operations. However, it is worth noting that the ratio increased gradually from Q4 2022 to Q1 2023, reaching its peak at 1.55, before declining again in the subsequent quarters.

Overall, the company's financial leverage ratio has displayed some volatility but seems to be on a downward trajectory, suggesting a potential improvement in the company's financial risk profile. Further analysis and monitoring of this ratio over time will be essential to assess XPEL Inc's ability to manage its debt levels effectively.