Xencor Inc (XNCR)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.02	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $14,642K ÷ ($14,642K + $668,796K)
= 0.02

Xencor Inc's debt-to-capital ratio has been consistently low throughout the past eight quarters, with values at or near zero. This indicates that the company's reliance on debt to finance its operations and investments is minimal compared to its total capital structure, which includes both debt and equity. A low debt-to-capital ratio suggests that Xencor Inc has a conservative approach to leveraging, which may lower financial risk and enhance financial flexibility. However, it's important to note that a very low debt-to-capital ratio could also mean limited access to potential tax benefits associated with debt financing. Overall, Xencor Inc's stable and low debt-to-capital ratio over the past two years reflects a well-managed capital structure with a conservative debt usage strategy.