Xencor Inc (XNCR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 53,790 | 53,942 | 143,480 | 163,544 | 50,312 |
| Short-term investments | US$ in thousands | 539,935 | 569,120 | 190,627 | 439,459 | 479,470 |
| Total current liabilities | US$ in thousands | 84,709 | 63,844 | 70,738 | 121,061 | 66,558 |
| Cash ratio | 7.01 | 9.76 | 4.72 | 4.98 | 7.96 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($53,790K
+ $539,935K)
÷ $84,709K
= 7.01
The cash ratio of Xencor Inc has fluctuated over the past five years, ranging from a low of 5.06 in 2021 to a high of 10.12 in 2022. The cash ratio measures a company's ability to cover short-term liabilities with its cash and cash equivalents.
A higher cash ratio indicates that the company has more cash on hand relative to its current liabilities, suggesting a stronger liquidity position. The significant increase in the cash ratio from 2021 to 2022 may indicate improved liquidity management or an increase in cash reserves during that period.
It is important to note that while a high cash ratio can be a positive indicator of liquidity, excessively high levels of cash may also imply that the company is not efficiently utilizing its resources to generate returns. Therefore, it is essential for Xencor Inc to strike a balance between maintaining liquidity and investing excess cash in value-creating opportunities.
Peer comparison
Dec 31, 2023