Xpel Inc (XPEL)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 67,279 | 53,375 | 39,743 | 23,054 | 17,030 |
| Interest expense | US$ in thousands | 1,248 | 1,410 | 303 | 249 | 97 |
| Interest coverage | 53.91 | 37.85 | 131.17 | 92.59 | 175.57 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $67,279K ÷ $1,248K
= 53.91
The interest coverage ratio for XPEL Inc has shown fluctuations over the past five years. In 2023, the interest coverage ratio stood at 53.66, indicating that the company's earnings before interest and taxes (EBIT) were 53.66 times higher than its interest expenses for the year, suggesting a strong ability to meet interest obligations. This reflects a decrease from the previous year but remains at a healthy level.
Comparing to prior years, in 2022, the interest coverage ratio was 38.25, which also indicates a comfortable cushion for meeting interest payments. However, there was a significant increase in the interest coverage ratio in 2021 to 132.40, showcasing a substantial improvement in the company's ability to cover interest expenses.
In 2020 and 2019, XPEL Inc maintained robust interest coverage ratios of 93.86 and 176.15, respectively, indicating the company's consistent ability to generate earnings well above its interest expenses and implying a low risk of financial distress due to debt obligations.
Overall, XPEL Inc has generally exhibited strong interest coverage ratios over the past five years, with some fluctuations, suggesting a healthy financial position and a solid ability to service its debt.