Xencor Inc (XNCR)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	26.53	126.23	59.15	68.92	65.26	54.59	68.03	93.00	83.35	41.26	27.24	35.71	36.27	38.28	44.60	32.23	48.27	9.91	21.22	315.73
Number of days of payables	days	80.00	94.10	88.82	97.27	67.08	102.58	114.01	90.18	113.22	82.98	70.11	79.02	95.04	148.43	124.32	128.07	134.33	119.08	123.31	77.53
Cash conversion cycle	days	-53.47	32.13	-29.67	-28.36	-1.82	-47.99	-45.98	2.82	-29.87	-41.72	-42.87	-43.31	-58.77	-110.15	-79.72	-95.84	-86.06	-109.17	-102.09	238.20

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 26.53 – 80.00
= -53.47

The cash conversion cycle of Xencor Inc has shown fluctuating trends over the past few quarters. In Q4 2023, the cash conversion cycle reduced significantly to 24.48 days from 138.20 days in Q3 2023. This indicates that the company was able to manage its cash and working capital more efficiently, resulting in quicker conversion of inventory into cash.

However, this improvement in Q4 2023 followed a sharp increase in the cash conversion cycle in Q3 2023. The company took 138.20 days to convert its investments in raw materials and resources into cash in that quarter, which was significantly higher than the previous quarters. This could suggest challenges in managing inventory or delays in collecting receivables.

Looking further back, Q2 2023 and Q1 2023 also showed improvements in the cash conversion cycle compared to the previous year. In contrast, Q4 2022 and Q1 2022 had longer cash conversion cycles, indicating potential inefficiencies in managing working capital, inventory, or receivables during those periods.

Overall, while Xencor Inc was able to improve its cash conversion cycle in Q4 2023, there are fluctuations in performance across quarters, highlighting the importance of closely monitoring working capital management practices to ensure efficient operations and cash flow.