Vir Biotechnology Inc (VIR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	86,180	1,615,800	1,095,420	76,368	8,091
Property, plant and equipment	US$ in thousands	96,018	105,609	42,834	17,946	16,308
Fixed asset turnover		0.90	15.30	25.57	4.26	0.50

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $86,180K ÷ $96,018K
= 0.90

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. In the case of Vir Biotechnology Inc, the trend in fixed asset turnover over the past five years has been inconsistent.

In 2019, the fixed asset turnover was relatively low at 0.50, indicating that the company was generating $0.50 in sales for every dollar invested in fixed assets. This could suggest underutilization or inefficiency in the company's fixed asset base at that time.

However, in the subsequent years, there was a significant improvement in the fixed asset turnover ratio. In 2020, the ratio increased to 4.26, signaling a substantial increase in the efficiency of utilizing fixed assets to generate revenue. This improvement continued in 2021 when the ratio further increased to 25.57, suggesting that the company was generating $25.57 in sales for every dollar invested in fixed assets.

In 2022, there was a notable spike in the fixed asset turnover ratio to 15.30, indicating a temporary surge in revenue generation from fixed assets. However, in 2023, the fixed asset turnover ratio declined to 0.90, signaling a decrease in efficiency in leveraging fixed assets to generate revenue compared to the previous year.

Overall, while there have been fluctuations in the fixed asset turnover ratio for Vir Biotechnology Inc over the past five years, the company has shown periods of improved efficiency in utilizing its fixed assets to generate revenue. It is important for stakeholders to closely monitor this ratio to assess the company's operational efficiency and asset utilization in the future.