Xencor Inc (XNCR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 13.75 | 5.59 | 4.38 | 10.18 | 7.72 |
| Payables turnover | 4.56 | 5.44 | 3.22 | 3.84 | 2.72 |
| Working capital turnover | 0.35 | 0.28 | 0.83 | 0.25 | 0.35 |
Inventory turnover is not provided in the data table, which indicates that the company may not disclose this ratio or may not have significant inventory levels that impact its financial performance.
Receivables turnover indicates how efficiently the company collects its outstanding receivables. Xencor Inc's receivables turnover has been fluctuating over the five-year period, with a noticeable increase in 2023 compared to the previous years. This suggests that the company improved its ability to collect receivables faster in 2023, which is a positive sign for its liquidity.
Payables turnover, however, is consistently at 0.00 over the period, which could mean the company does not have a significant accounts payable balance or that it manages its payments differently.
Working capital turnover measures how efficiently a company utilizes its working capital to generate sales. Xencor Inc's working capital turnover has varied over the years, with a notable increase in 2021 followed by a decline in 2022 and a slight increase again in 2023. The trend implies some fluctuations in the company's working capital efficiency in generating sales, with 2021 being the most efficient year in terms of working capital turnover.
Overall, Xencor Inc's activity ratios show mixed performance in managing its receivables, payables, and working capital turnover over the five-year period, indicating fluctuations in operational efficiency and liquidity management. Further analysis and consideration of other financial metrics would provide a more comprehensive assessment of the company's overall financial health.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 26.54 | 65.27 | 83.33 | 35.85 | 47.31 |
| Number of days of payables | days | 80.00 | 67.08 | 113.22 | 95.04 | 134.33 |
Based on the provided data, we can analyze the activity ratios of Xencor Inc as follows:
1. Days of Sales Outstanding (DSO):
- The DSO ratio measures how long, on average, it takes for a company to collect its accounts receivable.
- Xencor Inc's DSO has fluctuated over the past five years, with the highest DSO of 88.07 days in 2021 and the lowest of 24.48 days in 2023.
- A decreasing trend in DSO indicates that Xencor Inc has been improving its efficiency in collecting payments from customers, which is a positive sign for cash flow management.
2. Days of Inventory on Hand (DOH):
- Unfortunately, the data for the Days of Inventory on Hand (DOH) ratio is not provided, making it difficult to assess Xencor Inc's inventory management efficiency.
- DOH ratio would have provided insights into how long, on average, the company holds inventory before selling it.
3. Number of Days of Payables:
- The number of days of payables ratio is also not provided in the data table, which would have indicated how long it takes for Xencor Inc to pay its suppliers.
- This ratio is essential for understanding the company's relationship with its suppliers and its working capital management.
In conclusion, while the data on Days of Sales Outstanding (DSO) provides some insights into Xencor Inc's efficiency in collecting receivables, the lack of information on Days of Inventory on Hand (DOH) and Number of Days of Payables limits a comprehensive analysis of the company's overall activity ratios.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 2.83 | 2.86 | 10.42 | 6.03 | 10.78 |
| Total asset turnover | 0.20 | 0.20 | 0.35 | 0.19 | 0.25 |
The long-term activity ratios of Xencor Inc indicate the efficiency with which the company utilizes its fixed assets and total assets to generate sales revenue.
- Fixed asset turnover has shown a decreasing trend over the past five years, from 9.91 in 2019 to 2.55 in 2023. This suggests that the company has become less efficient in generating sales revenue from its fixed assets during this period. The fluctuations in fixed asset turnover may indicate changes in the company's asset management strategies or the nature of its business operations.
- Total asset turnover has also shown a declining trend, from 0.23 in 2019 to 0.18 in 2023. This ratio reflects how efficiently the company utilizes its total assets to generate sales. The decreasing trend suggests that Xencor Inc may be facing challenges in optimizing its total asset base to generate sales revenue effectively.
In conclusion, the declining trends in both fixed asset turnover and total asset turnover ratios indicate a potential inefficiency in the company's asset utilization over the analyzed period. Xencor Inc may need to review its asset management strategies and operational efficiency to improve its long-term activity ratios and overall financial performance.