Xencor Inc (XNCR)

Working capital turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 186,926 169,417 294,261 130,765 170,319
Total current assets US$ in thousands 623,160 675,342 424,368 637,672 558,405
Total current liabilities US$ in thousands 84,709 63,844 70,738 121,061 66,558
Working capital turnover 0.35 0.28 0.83 0.25 0.35

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $186,926K ÷ ($623,160K – $84,709K)
= 0.35

Xencor Inc's working capital turnover has fluctuated over the past five years. The working capital turnover ratio measures how effectively a company is using its working capital to generate sales revenue.

In 2021, the ratio was relatively high at 0.78, indicating that Xencor was able to efficiently generate sales using its working capital. However, this ratio dropped significantly in 2022 to 0.27, suggesting a decline in the efficiency of working capital utilization.

The company then saw a notable improvement in 2023, with a working capital turnover of 0.31. Although this ratio is lower compared to 2021, the increase from the previous year indicates a recovery in the efficiency of working capital management.

Overall, Xencor's working capital turnover has shown variability in recent years, reflecting fluctuations in the company's ability to generate revenue relative to its working capital. Continued monitoring of this ratio will be important to assess the company's ongoing operational efficiency and financial performance.