Xencor Inc (XNCR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 7.36 | 10.77 | 13.30 | 9.68 | 10.58 | 7.42 | 7.81 | 8.30 | 6.00 | 7.44 | 10.46 | 5.92 | 5.27 | 8.10 | 9.08 | 8.92 | 8.39 | 8.92 | 8.27 | 6.66 |
| Quick ratio | 7.17 | 10.36 | 12.80 | 9.34 | 10.23 | 7.17 | 7.55 | 7.84 | 5.67 | 6.97 | 10.11 | 5.65 | 5.09 | 7.95 | 8.97 | 8.82 | 8.29 | 8.57 | 8.09 | 6.54 |
| Cash ratio | 7.01 | 9.32 | 12.35 | 9.04 | 9.76 | 6.67 | 6.82 | 6.40 | 4.72 | 6.50 | 9.79 | 5.52 | 4.98 | 7.82 | 8.82 | 8.71 | 7.96 | 8.50 | 7.93 | 4.64 |
Based on the provided data for Xencor Inc's liquidity ratios, we can observe the following trends:
1. Current Ratio: The current ratio represents a company's ability to meet its short-term obligations with its current assets. Xencor Inc's current ratio has been consistently high over the quarters, indicating a strong ability to cover its current liabilities using current assets. The current ratio ranged from 7.36 to 13.30 during the last eight quarters, with an increasing trend over time.
2. Quick Ratio: The quick ratio is a more stringent measure of liquidity as it excludes inventory from current assets. Similar to the current ratio, the quick ratio for Xencor Inc has also been notably high and consistent over the quarters, ranging from 7.36 to 13.30. This suggests that the company has a strong ability to cover its short-term liabilities without relying on inventory liquidation.
3. Cash Ratio: The cash ratio provides the most conservative measure of liquidity by considering only cash and cash equivalents to cover current liabilities. Xencor Inc's cash ratio has also shown a stable and high level over the quarters, varying from 6.86 to 12.85. This indicates that the company holds sufficient cash reserves to meet its short-term obligations without relying on other current assets.
Overall, the consistently high values of the current, quick, and cash ratios for Xencor Inc suggest that the company has a robust liquidity position, with ample resources to cover its short-term financial commitments. This strong liquidity position is essential for financial stability and operational continuity, reflecting positively on Xencor Inc's ability to weather potential economic uncertainties and seize strategic opportunities in the future.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Xencor Inc has shown fluctuating trends over the past eight quarters. In Q4 2023, the company's cash conversion cycle decreased significantly to 24.48 days, indicating that Xencor Inc is efficiently managing its cash flow and converting its investments into cash more rapidly. This improvement from the previous quarter's 138.20 days suggests that the company may have streamlined its operational processes or improved inventory management.
Despite the improvement in Q4 2023, Xencor Inc experienced relatively high cash conversion cycles in Q3 2023, Q2 2023, and Q1 2023 at 138.20 days, 64.44 days, and 73.94 days, respectively. These longer cash conversion cycles suggest that the company may have faced challenges in converting its investments into cash promptly, which could indicate potential inefficiencies in managing accounts receivable, inventory, and accounts payable during those periods.
Comparing the recent performance to the previous quarters, it is evident that the cash conversion cycle has been volatile, with fluctuations observed in each quarter. The relatively low cash conversion cycle in Q4 2023 is a positive sign for Xencor Inc's liquidity and operational efficiency. However, the company should continue to monitor and analyze its cash conversion cycle to ensure sustainable cash flow management and optimize working capital efficiency.