Xencor Inc (XNCR)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -198,280 | -137,372 | -82,473 | 43,767 | -76,797 |
| Interest expense | US$ in thousands | 36,643 | 6,177 | 36,764 | 7,491 | 0 |
| Interest coverage | -5.41 | -22.24 | -2.24 | 5.84 | — |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-198,280K ÷ $36,643K
= -5.41
The interest coverage ratio reflects the company's ability to meet its interest obligations with its operating income. A higher ratio indicates that the company is more capable of servicing its debt. Looking at the historical data for Xencor Inc:
- As of December 31, 2020, the interest coverage ratio was not available, possibly indicating missing data.
- As of December 31, 2021, the interest coverage ratio was 5.84, suggesting that the company generated enough operating income to cover its interest expenses nearly six times over, indicating good financial health.
- By December 31, 2022, the interest coverage ratio dropped to -2.24, signifying that the company's operating income was insufficient to cover its interest payments, raising concerns about its ability to meet debt obligations.
- The ratio deteriorated further to -22.24 by December 31, 2023, indicating a significant decline in the company's financial situation, with operating income far below the amount required to cover interest expenses.
- As of December 31, 2024, the interest coverage ratio improved slightly to -5.41, but it still remained negative, suggesting ongoing challenges in meeting interest payments with operating income.
Overall, the trend in Xencor Inc's interest coverage ratio shows a concerning decline in recent years, indicating potential financial difficulties and a heightened risk for investors and creditors.
Peer comparison
Dec 31, 2024