Xencor Inc (XNCR)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -232,618 | -126,087 | -55,181 | 82,631 | -63,539 |
| Total stockholders’ equity | US$ in thousands | 677,611 | 668,796 | 727,496 | 733,504 | 572,444 |
| ROE | -34.33% | -18.85% | -7.59% | 11.27% | -11.10% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-232,618K ÷ $677,611K
= -34.33%
The return on equity (ROE) for Xencor Inc has exhibited significant fluctuation over the past five years. The ROE was negative in 2020 at -11.10%, indicating that the company's net income was insufficient to generate a positive return for shareholders based on the equity invested.
In 2021, the ROE improved to 11.27%, suggesting a turnaround in the company's profitability and efficiency in generating returns for shareholders. However, this positive trend was short-lived as the ROE dropped to -7.59% in 2022, signaling potential challenges or setbacks faced by Xencor Inc during that year.
The downward trend in ROE continued in the subsequent years, with the ratio reaching -18.85% in 2023 and a further decline to -34.33% in 2024. These declining ROE figures reflect deteriorating profitability relative to the equity capital employed by the company.
Overall, Xencor Inc's ROE performance indicates inconsistency and a lack of sustained profitability, which may raise concerns regarding the company's operational efficiency and ability to generate returns for its shareholders in the long term. Further analysis and investigation into the factors contributing to these fluctuations in ROE would be necessary to assess the company's financial health and strategic direction.
Peer comparison
Dec 31, 2024