Xencor Inc (XNCR)

Fixed asset turnover

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Revenue (ttm) US$ in thousands 186,941 159,035 123,534 105,187 169,448 300,051 291,251 346,181 294,209 181,761 198,671 128,003 129,246 90,908 79,618 87,539 166,940 174,988 181,170 160,553
Property, plant and equipment US$ in thousands 66,124 68,035 67,997 66,685 59,183 51,040 38,855 28,411 28,240 24,179 23,132 22,301 21,682 19,771 16,239 16,799 15,805 13,868 12,128 11,456
Fixed asset turnover 2.83 2.34 1.82 1.58 2.86 5.88 7.50 12.18 10.42 7.52 8.59 5.74 5.96 4.60 4.90 5.21 10.56 12.62 14.94 14.01

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $186,941K ÷ $66,124K
= 2.83

Xencor Inc's fixed asset turnover ratio has exhibited a fluctuating trend over the past eight quarters. The ratio measures how efficiently the company generates revenue from its fixed assets. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate revenue.

In Q4 2023, the fixed asset turnover ratio was 2.55, showing an increase from the previous quarter's 2.14. This suggests that Xencor Inc improved its efficiency in generating revenue from its fixed assets in the most recent quarter.

The ratio was relatively stable in Q2 and Q1 of 2023 at 1.67 and 1.47, respectively, indicating a consistent level of fixed asset utilization during that period. However, the ratio saw a significant decline in Q4 2022 compared to the previous quarters, with a value of 2.78, implying a decrease in revenue generated per dollar of fixed assets.

Notably, in Q2 and Q1 of 2022, Xencor Inc's fixed asset turnover ratio was considerably high at 7.45 and 11.50, respectively, indicating exceptional efficiency in revenue generation from fixed assets during that period. However, the ratio experienced a substantial decline in subsequent quarters, denoting a potential decrease in operational efficiency or a change in the company's asset base.

Overall, while the fixed asset turnover ratio of Xencor Inc has shown some fluctuations, it is essential for the company to closely monitor and manage the efficiency of its fixed asset utilization to sustain and improve its overall financial performance and profitability.