Xencor Inc (XNCR)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-126,087	-55,181	82,631	-69,333	26,875
Total stockholders’ equity	US$ in thousands	668,796	727,496	733,504	572,444	593,201
ROE		-18.85%	-7.59%	11.27%	-12.11%	4.53%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-126,087K ÷ $668,796K
= -18.85%

ROE, a key profitability ratio, indicates the company's ability to generate profit from shareholders' equity. Xencor Inc's ROE has fluctuated significantly over the past five years, with values ranging from -18.85% to 11.27%.

In 2023, Xencor Inc reported an ROE of -18.85%, reflecting a negative return on shareholder equity. This suggests that the company experienced a loss on the equity invested by shareholders during the year.

The previous year, in 2022, the ROE was -7.59%, also indicating a negative return on equity. This negative trend in ROE over the past two years may raise concerns about the company's profitability and efficiency in utilizing shareholders' equity.

However, in 2021, Xencor Inc achieved an ROE of 11.27%, signaling a positive return on equity. This indicates that the company was able to generate a profit from the shareholders' equity during that year, reflecting a strong financial performance.

In contrast, in 2020 and 2019, the company's ROE was -12.11% and 4.53%, respectively, showing mixed performance in those years.

Overall, the fluctuation in Xencor Inc's ROE over the past five years raises questions about the company's consistency in generating returns for its shareholders and underscores the importance of closely monitoring and analyzing future financial performance.