Xencor Inc (XNCR)

Working capital 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
Total current assets	US$ in thousands	623,160	571,176	593,562	629,976	675,342	667,998	585,936	505,970	424,368	329,629	480,967	591,168	637,672	570,883	603,386	588,107	558,405	573,765	527,009	488,671
Total current liabilities	US$ in thousands	84,709	53,041	44,630	65,056	63,844	90,032	75,041	60,941	70,738	44,317	45,962	99,931	121,061	70,488	66,449	65,917	66,558	64,312	63,712	73,321
Working capital turnover		0.35	0.31	0.23	0.19	0.28	0.52	0.57	0.78	0.83	0.64	0.46	0.26	0.25	0.18	0.15	0.17	0.34	0.34	0.39	0.39

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $186,941K ÷ ($623,160K – $84,709K)
= 0.35

Xencor Inc's working capital turnover has exhibited fluctuations over the past eight quarters. The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales revenue. A higher ratio indicates more efficient utilization of working capital.

In Q1 2022, the working capital turnover ratio was a robust 0.73, suggesting that Xencor effectively converted its working capital into sales during that period. However, this ratio experienced a decline in subsequent quarters, reaching its lowest point of 0.17 in Q1 2023.

The decreasing trend in working capital turnover from Q1 2022 to Q1 2023 may indicate inefficiencies in managing working capital or challenges in generating sales revenue. It is important for Xencor to closely monitor and manage its working capital levels to ensure optimal utilization.

The recent increase in the working capital turnover ratio from Q1 2023 to Q4 2023, although still below the levels seen in early 2022, signifies a potential improvement in working capital management efficiency. Xencor should continue to focus on enhancing its working capital turnover to support sustainable growth and profitability in the future.