Xencor Inc (XNCR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.40 | 1.42 | 1.16 | 1.14 | 1.23 |
Based on the provided data, Xencor Inc demonstrates strong solvency ratios.
1. Debt-to-assets ratio: Xencor Inc has consistently maintained a debt-to-assets ratio of 0.00 over the five-year period from 2020 to 2024. This indicates that the company's total debt is effectively zero in relation to its total assets, reflecting a low risk of insolvency related to debt obligations.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also remained at 0.00 across all years. This reaffirms the company's conservative financing structure, where debt plays a minimal role in funding its operations relative to its total capital.
3. Debt-to-equity ratio: Xencor Inc's debt-to-equity ratio has consistently been 0.00 during the years analyzed. This ratio signifies that the company has no debt in proportion to its equity, indicating a strong financial position and minimal reliance on borrowed funds for its operations.
4. Financial leverage ratio: The financial leverage ratio has shown a slight fluctuation over the five-year period, ranging from 1.14 to 1.42. Despite the variations, the ratios are relatively low, indicating that Xencor Inc utilizes a conservative level of debt to finance its assets and operations, resulting in a stable capital structure.
In conclusion, Xencor Inc's solvency ratios suggest a robust financial position with minimal debt exposure and a conservative capital structure, positioning the company well to meet its financial obligations and sustain long-term stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -5.41 | -22.24 | -2.24 | 5.84 | — |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt, with higher ratios indicating greater financial health.
For Xencor Inc, the interest coverage ratio has shown volatility over the past years. In 2020, the data is not available ("—"), so we cannot assess the company's ability to cover its interest payments during that period.
In 2021, Xencor Inc had an interest coverage ratio of 5.84, indicating that the company generated sufficient earnings to cover its interest expenses nearly six times. This suggests a healthy financial position.
However, the trend changes significantly in subsequent years. In 2022, the interest coverage dropped to -2.24, implying that the company's operating earnings were insufficient to cover its interest costs, raising concerns about solvency.
The situation worsened in 2023 and 2024, with interest coverages of -22.24 and -5.41 respectively. These ratios indicate a severe decline in the company's ability to fulfill its interest obligations with its earnings, highlighting potential financial distress.
Overall, the fluctuating interest coverage ratios for Xencor Inc depict a deteriorating financial situation, as the company may be facing challenges in meeting its debt repayment obligations and maintaining financial stability in the coming periods. Further analysis and corrective actions may be necessary to address these concerning trends.