XPEL, Inc. (XPEL) Balance Sheet

The growth in retained earnings from $190.3M to $310.1M over the same window suggests internally generated capital is funding the expansion rather than external financing. This points to a balance sheet that is strengthening on a book basis, though the pace of asset growth now outstrips the revenue growth reported in the most recent quarter, which investors should monitor for signs of capital being deployed ahead of demand.

The absolute debt level is modest relative to equity and the current ratio of 2.56 indicates ample short-term coverage. The step-up in borrowing coincides with the capex surge described in the cash flow analysis, which suggests the leverage increase is financing a discrete manufacturing project rather than operating needs. Whether this debt is repaid from future free cash flow will depend on the margin recovery the company is targeting.

The PP&E jump is consistent with the San Antonio and China build-outs and marks a shift toward a more asset-heavy profile than the historically capital-light model. Goodwill growth alongside acquisition spending suggests the company is still buying distribution and service capacity, and the combined intangible and fixed asset base now warrants scrutiny of future impairment and utilization risk.

A current ratio above 2.5 still provides a substantial cushion, but the trend away from the 4x-plus levels of 2025 reflects both higher payables and current liabilities alongside the capacity build. The cash balance has not fallen sharply, which suggests the company is funding capex through a mix of operating cash and borrowing rather than depleting its reserves.