Xencor Inc (XNCR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.42 | 1.16 | 1.14 | 1.23 | 1.13 |
The solvency ratios of Xencor Inc, as reflected in the table, indicate a very low level of debt compared to the company's assets, capital, and equity over the past five years. The debt-to-assets ratio has consistently remained at low levels, with the ratio standing at 0.02 in 2023. This indicates that only a minimal portion of the company's assets is financed through debt.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also remained very low, indicating that the company relies more on equity financing rather than debt financing. In 2023, the debt-to-capital and debt-to-equity ratios were both at 0.03, suggesting a stable capital structure with minimal financial risk associated with debt.
The financial leverage ratio provides a broader view of the company's financial structure. While the ratio has slightly increased from 1.13 in 2019 to 1.42 in 2023, it still remains at a moderate level. This increase may indicate a slight increase in financial risk, but overall, the company's financial leverage remains relatively conservative.
In conclusion, Xencor Inc has maintained a conservative approach to debt financing, with consistently low debt ratios across different solvency measures. This indicates a strong financial position and a lower risk of financial distress associated with high debt levels.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | -2.24 | 5.84 | — | 0.78 |
Based on the provided data, it appears that information on Xencor Inc's interest coverage ratio is unavailable for the years ranging from 2019 to 2023. The interest coverage ratio is a key financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. The absence of this ratio in the table suggests that the specific data needed to calculate it (net income before interest and taxes divided by interest expense) is not provided.
Without the interest coverage ratio figures, it is challenging to assess Xencor Inc's ability to generate sufficient earnings to cover its interest expenses. Investors and analysts often use this ratio to gauge a company's financial health and risk of default. In the absence of this crucial financial metric, it may be challenging to fully evaluate the company's leverage and its capacity to service its debt obligations effectively. Additional information or access to more detailed financial statements would be necessary to conduct a thorough analysis of Xencor Inc's interest coverage.