Xencor Inc (XNCR)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	40,875	53,790	53,942	143,480	163,544
Short-term investments	US$ in thousands	408,971	539,935	569,120	190,627	439,459
Total current liabilities	US$ in thousands	87,432	84,709	63,844	70,738	121,061
Cash ratio		5.15	7.01	9.76	4.72	4.98

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($40,875K + $408,971K) ÷ $87,432K
= 5.15

The cash ratio is a liquidity ratio that measures a company's ability to cover its current liabilities using its cash and cash equivalents. Analyzing the cash ratio of Xencor Inc over the years reveals fluctuations in its liquidity position.

- In December 31, 2020, the cash ratio was 4.98, indicating that Xencor had $4.98 of cash and cash equivalents for every dollar of current liabilities. This suggests a strong liquidity position at that time.
- By December 31, 2021, the cash ratio decreased to 4.72, reflecting a slight decline in the company's ability to cover its short-term obligations with cash on hand.
- The cash ratio significantly improved to 9.76 by December 31, 2022, indicating a substantial increase in liquidity. Xencor had almost $10 in cash and cash equivalents for each dollar of current liabilities.
- However, the cash ratio dropped to 7.01 by December 31, 2023, suggesting a decrease in the company's liquidity position compared to the previous year.
- Finally, by December 31, 2024, the cash ratio stood at 5.15, indicating that Xencor still maintained a reasonable level of liquidity, although slightly lower than in 2022.

Overall, the analysis of Xencor Inc's cash ratio highlights fluctuations in its liquidity position over the years, with some years showing stronger liquidity compared to others. It is important for stakeholders to monitor these changes to assess the company's ability to meet its short-term obligations effectively.