Xencor Inc (XNCR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 14,642 | 0 | — | — | — |
| Total assets | US$ in thousands | 952,692 | 846,266 | 838,211 | 703,244 | 670,250 |
| Debt-to-assets ratio | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $14,642K ÷ $952,692K
= 0.02
Xencor Inc's debt-to-assets ratio has shown a consistent pattern of decline over the past five years. The ratio has decreased from 0.00 in 2019, 2020, and 2021 to 0.02 in 2023. This indicates that the company has very little debt relative to its total assets. A low debt-to-assets ratio suggests that the company relies more on equity financing rather than debt to fund its operations and investments. This can be viewed positively as it signifies a lower financial risk, as the company has less debt obligations to meet. However, it is essential to note that a very low debt-to-assets ratio could also indicate underutilization of debt for potential growth opportunities or inadequate leverage. Overall, Xencor Inc's increasing debt-to-assets ratio trend may be a strategic decision to optimize its capital structure and potentially enhance shareholder value.
Peer comparison
Dec 31, 2023