Xencor Inc (XNCR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -198,280 | -137,372 | -82,473 | 43,767 | -76,797 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 677,611 | 668,796 | 727,496 | 733,504 | 572,444 |
| Return on total capital | -29.26% | -20.54% | -11.34% | 5.97% | -13.42% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-198,280K ÷ ($—K + $677,611K)
= -29.26%
Based on the provided data, Xencor Inc's return on total capital has been fluctuating over the years. In December 31, 2020, the return on total capital was -13.42%, which indicates that the company incurred a negative return on the capital invested during that period.
However, there was an improvement in the return on total capital in December 31, 2021, where it increased to 5.97%. This suggests that the company was able to generate a positive return on the total capital employed in the business during that year.
Subsequently, in December 31, 2022, the return on total capital declined again to -11.34%, indicating a decrease in the efficiency of capital utilization by the company. The trend worsened in the following years, with returns of -20.54% in December 31, 2023, and -29.26% in December 31, 2024.
Overall, the negative returns on total capital in the later years could raise concerns about the company's ability to efficiently generate returns from the capital invested. It may indicate potential inefficiencies in the company's operations or challenges in generating sufficient profits relative to the capital employed.
Peer comparison
Dec 31, 2024