Xencor Inc (XNCR)

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

The debt-to-equity ratio of Xencor Inc has shown a consistent and significant decrease over the past eight quarters. Starting from 0.00 in Q1 2022, the ratio has steadily declined to 0.03 in Q4 2023. This indicates that the company's level of debt relative to its equity has gradually increased, albeit remaining relatively low overall.

A debt-to-equity ratio of 0.03 suggests that Xencor Inc has 0.03 units of debt for every unit of equity. This indicates that the company relies more on equity financing rather than debt to fund its operations and growth. A lower debt-to-equity ratio is generally considered favorable as it signifies lower financial risk and less reliance on borrowed funds.

Overall, the consistent decrease in the debt-to-equity ratio of Xencor Inc over the past two years reflects a prudent financial management strategy focused on maintaining a healthy balance between debt and equity financing. It also indicates that the company has been able to fund its operations and investments primarily through equity capital, which can contribute to financial stability and long-term sustainability.