Xencor Inc (XNCR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (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 |
| Long-term debt | US$ in thousands | 14,642 | — | — | — | 0 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 668,796 | 669,010 | 678,876 | 683,583 | 727,496 | 722,698 | 742,341 | 763,023 | 733,504 | 618,860 | 646,938 | 583,612 | 572,444 | 568,483 | 570,645 | 593,005 | 593,201 | 610,237 | 608,091 | 609,565 |
| Return on total capital | -20.29% | -21.86% | -24.50% | -24.62% | -11.34% | 7.16% | 6.58% | 11.26% | 5.97% | -9.95% | -5.72% | -14.34% | -13.42% | -16.48% | -15.99% | -12.34% | 2.33% | 3.82% | 6.29% | 4.84% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-138,639K ÷ ($14,642K + $668,796K)
= -20.29%
Return on total capital is a key financial ratio that indicates the efficiency of a company in generating profits from all the capital invested in the business, including both equity and debt.
Based on the provided data for Xencor Inc, the return on total capital has shown a declining trend over the past eight quarters. The ratio has ranged from -24.62% in Q1 2023 to a peak of 11.26% in Q1 2022.
The negative values in Q1 to Q4 2023 indicate that the company's profits are not sufficient to cover the total capital employed in the business during those quarters. This could suggest inefficiency or poor performance in utilizing the capital to generate returns for shareholders and debt holders.
On the other hand, the positive values in Q1 and Q2 2022 show that the company was able to generate returns that exceeded the total capital invested in the business during those periods. This indicates a more favorable situation where the company is efficiently utilizing its capital to generate profits.
Overall, the declining trend in return on total capital for Xencor Inc over the analyzed periods may raise concerns about the company's profitability and capital efficiency. Further analysis of the company's operational performance, capital structure, and strategic initiatives would be necessary to understand the underlying factors contributing to these fluctuations in the ratio.
Peer comparison
Dec 31, 2023