Xencor Inc (XNCR)

The days of sales outstanding (DSO) measure for Xencor Inc indicates the average number of days it takes for the company to collect revenue from its customers after making a sale. A lower DSO suggests that a company is efficient in collecting payments from customers, whereas a higher DSO could imply potential issues with collections or credit policies.

Analyzing Xencor Inc's DSO over the past five years, we observe fluctuations in the metric. In 2019, the DSO was relatively high at 51.42 days, indicating a longer collection cycle. However, the company significantly improved its collection efficiency in 2020 with a DSO of 34.04 days, suggesting better management of accounts receivable.

Interestingly, in 2021, the DSO increased substantially to 88.07 days, signifying a potential slowdown in collections or extended credit terms provided to customers. This spike in DSO could raise concerns about liquidity or credit risk management during that period.

However, the company made a remarkable improvement in 2022, reducing its DSO to 64.31 days, although it was still higher than the levels observed in 2020. This improvement may indicate efforts to streamline collections processes or tighten credit policies to enhance cash flow management.

Notably, in 2023, Xencor Inc achieved a significant decrease in DSO to 24.48 days, signaling exceptional efficiency in collecting sales revenue. This reduction could reflect enhanced accounts receivable management, prompt collection efforts, or improved customer creditworthiness.

Overall, Xencor Inc's trend in DSO reflects fluctuating levels of efficiency in accounts receivable management over the past five years, with notable improvements in certain periods and potential areas for further optimization to ensure optimal cash flow and working capital management.

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Dec 31, 2023