Xencor Inc (XNCR)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -188,503 | -203,546 | -182,313 | -137,820 | -140,709 | -148,050 | -162,129 | -168,175 | -80,965 | 51,770 | 48,818 | 85,905 | 43,767 | -61,576 | -36,998 | -83,685 | -76,790 | -93,451 | -91,005 | -72,977 |
| Interest expense (ttm) | US$ in thousands | 45,242 | 12,162 | 11,374 | 10,537 | 1,708 | 3,610 | 4,982 | 5,692 | 5,498 | 3,040 | 1,857 | 1,287 | 849 | 1,270 | 2,497 | 4,440 | 7,264 | 9,971 | 12,247 | 13,772 |
| Interest coverage | -4.17 | -16.74 | -16.03 | -13.08 | -82.38 | -41.01 | -32.54 | -29.55 | -14.73 | 17.03 | 26.29 | 66.75 | 51.55 | -48.49 | -14.82 | -18.85 | -10.57 | -9.37 | -7.43 | -5.30 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-188,503K ÷ $45,242K
= -4.17
Based on the provided data, Xencor Inc's interest coverage ratio has shown significant fluctuations over the reporting periods. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
From March 31, 2020, to March 31, 2022, the interest coverage ratio remained negative, indicating that the company's operating income was insufficient to cover its interest expenses during these periods. This signifies a potential financial risk as the company was struggling to generate enough income to cover its interest payments.
Starting from September 30, 2021, the interest coverage ratio improved drastically, indicating a positive shift in the company's financial position. The ratio continued to increase significantly, reaching a peak of 66.75 on March 31, 2022, which reflects a substantial improvement in the company's ability to cover its interest payments comfortably.
However, the ratio started to decline from June 30, 2022, and entered negative territory again on December 31, 2022, continuing this trend until the end of 2024. This decline suggests a potential deterioration in the company's ability to generate sufficient income to cover its interest expenses, raising concerns about its financial stability.
Overall, the fluctuation in Xencor Inc's interest coverage ratio highlights the importance of closely monitoring the company's financial performance and its ability to generate sustainable operating income to meet its interest obligations in the long term.
Peer comparison
Dec 31, 2024