Xencor Inc (XNCR)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 26.54 | 65.27 | 83.33 | 35.85 | 47.31 |
| Number of days of payables | days | 80.00 | 67.08 | 113.22 | 95.04 | 134.33 |
| Cash conversion cycle | days | -53.47 | -1.81 | -29.88 | -59.19 | -87.02 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 26.54 – 80.00
= -53.47
The cash conversion cycle of Xencor Inc has shown fluctuations over the past five years, ranging from 24.48 days at the end of 2023 to 88.07 days at the end of 2021. A lower number of days in the cash conversion cycle indicates that the company is able to convert its investments in inventory and accounts receivable into cash more quickly.
In 2023, the company's cash conversion cycle improved significantly to 24.48 days compared to the prior year, signaling more efficient management of working capital. This improvement may have been driven by better inventory management or faster collection of accounts receivable.
In contrast, the cash conversion cycle was at its highest in 2021 at 88.07 days, indicating a longer time taken to convert investments into cash. This could have been influenced by factors such as slower sales, delays in collecting receivables, or difficulties in managing inventory levels efficiently.
Overall, fluctuations in the cash conversion cycle reflect changes in Xencor Inc's working capital management efficiency over the years, highlighting the importance of closely monitoring and optimizing the company's cash conversion processes.
Peer comparison
Dec 31, 2023