Vir Biotechnology Inc (VIR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 7.66 | — | — |
| Receivables turnover | — | — | 1.42 | — | — |
| Payables turnover | 0.44 | 22.78 | 10.10 | 0.00 | 0.00 |
| Working capital turnover | 0.06 | 0.80 | 0.90 | 0.11 | 0.02 |
Activity ratios provide insights into how efficiently a company is managing its operational resources. Let's analyze the activity ratios of Vir Biotechnology Inc based on the data provided:
1. Inventory Turnover:
- The inventory turnover ratio is not provided for all years, indicating that information on how effectively the company is managing its inventory is not available in the table.
2. Receivables Turnover:
- The receivables turnover ratio for 2021 is 1.42, suggesting that Vir Biotechnology Inc collected its accounts receivable approximately 1.42 times during the year. A higher turnover implies a more efficient collection of receivables.
3. Payables Turnover:
- The payables turnover ratio for 2023 is 0.44, indicating that the company paid its suppliers approximately 0.44 times during the year. A lower turnover may suggest a longer payment period or potential liquidity issues.
4. Working Capital Turnover:
- The working capital turnover ratio for 2023 is 0.06, implying that Vir Biotechnology Inc generated revenue of 0.06 times for every dollar of working capital employed. A higher turnover generally indicates better utilization of working capital.
Overall, the provided activity ratios offer limited insight due to missing data for some years. It appears that the company may have challenges in managing its payables effectively based on the low payables turnover ratio in 2023. However, without complete historical data, it is challenging to assess the trend and make conclusive evaluations regarding Vir Biotechnology Inc's activity efficiency over time.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 47.62 | — | — |
| Days of sales outstanding (DSO) | days | — | — | 257.59 | — | — |
| Number of days of payables | days | 836.13 | 16.02 | 36.14 | — | — |
Based on the provided activity ratios for Vir Biotechnology Inc, the following observations can be made:
1. Days of Inventory on Hand (DOH): Unfortunately, the data for Days of Inventory on Hand is not available for any of the years listed. Without this ratio, we are unable to assess how efficiently the company is managing its inventory levels.
2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding ratio for Vir Biotechnology Inc was 257.59 days in 2021. This indicates that, on average, the company took approximately 257.59 days to collect its accounts receivable in 2021. It suggests a relatively lengthy collection period, which may have implications for the company's cash flow and liquidity.
3. Number of Days of Payables: In 2023, Vir Biotechnology Inc had 836.13 days of payables, which is a significantly high number compared to previous years. This suggests that the company is taking a very long time to pay its suppliers, potentially indicating liquidity challenges or strained supplier relationships.
Overall, the analysis of these activity ratios reveals potential areas of concern regarding the company's inventory management, accounts receivable collection, and payment practices. Further investigation into the reasons behind these ratios and their trends over time would be warranted to fully understand the company's financial performance and operational efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.90 | 15.30 | 25.57 | 4.26 | 0.50 |
| Total asset turnover | 0.04 | 0.58 | 0.56 | 0.08 | 0.02 |
The long-term activity ratios of Vir Biotechnology Inc, as indicated by the fixed asset turnover and total asset turnover ratios, vary significantly over the past five years.
The fixed asset turnover ratio measures how efficiently the company utilizes its fixed assets to generate revenue. In 2023, the fixed asset turnover ratio decreased to 0.90 from 15.30 in 2022, indicating a significant drop in efficiency in utilizing fixed assets to generate revenue. This decrease suggests that the company may not be effectively utilizing its fixed assets to generate sales compared to the previous year.
On the other hand, the total asset turnover ratio indicates how well the company utilizes all of its assets to generate revenue. In 2023, the total asset turnover ratio improved slightly to 0.04 from 0.02 in 2019. While the ratio remains low, this improvement suggests that the company is becoming slightly more efficient in generating sales relative to its total assets.
Overall, based on the long-term activity ratios analysis, Vir Biotechnology Inc may need to further evaluate its utilization of fixed assets to improve the efficiency of generating revenue. Efforts to enhance productivity and streamline asset utilization may help the company improve its financial performance in the future.