Xencor Inc (XNCR)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	-138,639	-146,223	-166,303	-168,306	-82,475	51,770	48,818	85,905	43,767	-61,583	-37,005	-83,692	-76,797	-93,671	-91,225	-73,197	13,824	23,314	38,241	29,523
Total assets	US$ in thousands	952,692	778,430	778,121	803,411	846,266	835,269	851,325	857,922	838,211	697,264	695,602	692,737	703,244	646,349	644,720	666,963	670,250	686,244	684,753	697,003
Operating ROA		-14.55%	-18.78%	-21.37%	-20.95%	-9.75%	6.20%	5.73%	10.01%	5.22%	-8.83%	-5.32%	-12.08%	-10.92%	-14.49%	-14.15%	-10.97%	2.06%	3.40%	5.58%	4.24%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-138,639K ÷ $952,692K
= -14.55%

Operating ROA is a key financial metric that provides insight into the efficiency with which a company is generating profits from its assets used in operations. Xencor Inc's operating ROA has displayed fluctuating performance over the past eight quarters.

The operating ROA was negative in all quarters of 2023, indicating that the company's operating income was insufficient to cover the assets employed in its operations during those periods. The declining trend in 2023, from -14.55% in Q4 to -21.37% in Q2, suggests a worsening utilization of assets to generate operating profits.

Comparing 2023 with 2022, the operating ROA deteriorated significantly, with negative values in 2023 contrasting sharply with positive values in 2022. This underscores a decline in operational efficiency and profitability for Xencor Inc.

The positive values observed in Q3 and Q2 of 2022, peaking at 10.01%, indicate a period of strong operational performance and efficient asset utilization. However, the subsequent drops in Q1 and Q4 of 2022, and the negative values in 2023, signal challenges in maintaining profitability relative to asset deployment.

Overall, the declining trend in Xencor Inc's operating ROA over the observed periods highlights the need for the company to focus on improving operational efficiency and optimizing asset utilization to enhance profitability.