Xencor Inc (XNCR)

Xencor Inc's liquidity ratios indicate a strong ability to meet its short-term obligations with the current assets at its disposal. The current ratio has shown a fluctuating trend over the past five years, ranging from 5.27 to 10.58, with the latest value standing at 7.36. This indicates that for every dollar of current liabilities, the company has $7.36 of current assets available, implying a comfortable liquidity position.

Similarly, the quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, also shows a solid performance. The quick ratio has consistently been in line with the current ratio across all five years, indicating a strong position in terms of immediate liquidity.

The cash ratio, which provides a more stringent measure of liquidity by considering only cash and cash equivalents, reveals a slightly lower but still robust liquidity position for Xencor Inc. The company's cash ratio has shown a stable performance over the years, with the latest value of 7.22 highlighting the ability to cover current liabilities with cash on hand.

Overall, Xencor Inc's liquidity ratios demonstrate a sound financial position, with ample liquidity to meet its short-term obligations efficiently and effectively. Investors and creditors can take comfort in the company's ability to manage its liquidity effectively based on these ratios.

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Additional liquidity measure

The cash conversion cycle of Xencor Inc has exhibited significant fluctuations over the past five years. In 2023, the company's cash conversion cycle reduced substantially to 24.48 days from the previous year's 64.31 days. This indicates an improvement in the efficiency of Xencor's cash management and working capital utilization during the most recent period.

In 2022, the cash conversion cycle increased to 64.31 days, marking a substantial elongation compared to 2021, where it stood at 88.07 days. The significant increase in the cash conversion cycle in 2022 suggests potential inefficiencies in Xencor's operations, specifically related to managing receivables, inventory, and payables.

In 2021, Xencor experienced a notable decrease in its cash conversion cycle to 88.07 days from 34.04 days in 2020. This reduction indicates a more efficient cash management process, likely attributed to improvements in working capital management practices by the company during the year.

The cash conversion cycle in 2020 was relatively low at 34.04 days, representing an improvement from 51.42 days in 2019. This decline suggests that Xencor enhanced its ability to convert inputs into cash during the year, potentially through better inventory management and accounts receivable collection.

In 2019, the cash conversion cycle was at 51.42 days, showing a slight increase from the previous year. While this increase is moderate, it indicates a slight delay in Xencor's cash conversion, which could be attributed to less effective working capital management strategies during that period.

Overall, Xencor's cash conversion cycle has shown variability over the past five years, with improvements in certain years and deteriorations in others. It is crucial for the company to maintain a focus on optimizing its cash conversion cycle to enhance overall operational efficiency and financial performance.