Xpel Inc (XPEL)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 57,774 | 67,279 | 53,937 | 40,116 | 23,370 |
| Interest expense | US$ in thousands | 996 | 1,248 | 1,410 | 303 | 249 |
| Interest coverage | 58.01 | 53.91 | 38.25 | 132.40 | 93.86 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $57,774K ÷ $996K
= 58.01
The interest coverage ratio for Xpel Inc has exhibited some fluctuations over the years. As of December 31, 2020, the company had a solid interest coverage ratio of 93.86, indicating that it was comfortably able to meet its interest obligations. By December 31, 2021, the ratio improved significantly to 132.40, reflecting an even stronger ability to cover interest expenses.
However, by December 31, 2022, the interest coverage ratio dropped to 38.25, suggesting a potential increase in the company's financial risk or a higher proportion of interest expenses relative to its operating income. Despite the decline, the ratio rebounded to 53.91 by December 31, 2023, showing some improvement in the company's ability to handle its interest payments.
As of December 31, 2024, Xpel Inc's interest coverage ratio stood at 58.01, remaining above 1, which generally indicates that the company can cover its interest expenses comfortably. Overall, while there have been fluctuations in the interest coverage ratio over the years, the company has generally shown a reasonable ability to manage its interest obligations.