Xpel Inc (XPEL)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 67,280 | 63,446 | 63,150 | 58,283 | 53,375 | 50,536 | 43,819 | 41,262 | 39,741 | 38,900 | 37,095 | 29,496 | 23,053 | 20,694 | 17,807 | 16,644 |
| Interest expense (ttm) | US$ in thousands | 1,248 | 1,423 | 1,729 | 1,713 | 1,410 | 1,093 | 748 | 470 | 303 | 219 | 241 | 272 | 250 | 189 | 145 | 99 |
| Interest coverage | 53.91 | 44.59 | 36.52 | 34.02 | 37.85 | 46.24 | 58.58 | 87.79 | 131.16 | 177.63 | 153.92 | 108.44 | 92.21 | 109.49 | 122.81 | 168.12 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $67,280K ÷ $1,248K
= 53.91
Based on the data provided, XPEL Inc's interest coverage ratio has been fluctuating over the past eight quarters. The interest coverage ratio measures the company's ability to pay interest expenses on its outstanding debt using its operating income.
During Q4 2023, XPEL Inc had an interest coverage ratio of 53.66, indicating that the company's operating income was 53.66 times higher than its interest expenses for that quarter. This high ratio suggests a strong ability to meet interest obligations.
The interest coverage ratio has shown a decreasing trend from Q4 2022 to Q2 2023, dropping from 38.25 to 36.60. This may indicate a slight decline in the company's ability to cover interest expenses with operating income during this period.
However, in Q3 2022 and Q2 2022, the interest coverage ratios were notably higher at 47.23 and 59.73, respectively, suggesting a stronger ability to cover interest payments in those quarters.
Overall, XPEL Inc's interest coverage ratio has been relatively high over the past eight quarters, indicating a healthy ability to meet interest obligations with operating income. It is important for stakeholders to continue monitoring this ratio to ensure the company maintains a strong financial position.