Vir Biotechnology Inc (VIR)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	86,180	118,803	490,721	444,237	1,613,740	2,377,077	2,106,136	2,325,891	1,095,407	284,394	182,706	72,626	76,368	75,614	75,089
Property, plant and equipment	US$ in thousands	96,018	99,309	104,126	103,758	105,609	100,226	85,135	65,583	42,834	26,610	20,251	17,291	17,946	16,948	16,311
Fixed asset turnover		0.90	1.20	4.71	4.28	15.28	23.72	24.74	35.46	25.57	10.69	9.02	4.20	4.26	4.46	4.60

December 31, 2023 calculation

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

Fixed asset turnover measures how efficiently a company generates revenue from its investment in fixed assets such as property, plant, and equipment. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate sales.

Looking at Vir Biotechnology Inc's fixed asset turnover over the past eight quarters, we observe significant fluctuations. In Q1 2022, the ratio was notably high at 35.46, indicating that the company generated $35.46 in revenue for every dollar invested in fixed assets during that period. This suggests efficient utilization of fixed assets to drive sales.

However, the fixed asset turnover ratio saw a decline in subsequent quarters, reaching its lowest point at 0.90 in Q4 2023. This indicates a drop in the efficiency of generating revenue from fixed assets, potentially signaling underutilization or inefficient management of these assets during that quarter.

Overall, the trend in Vir Biotechnology Inc's fixed asset turnover suggests varying degrees of efficiency in utilizing fixed assets to generate revenue. Further analysis and comparison with industry benchmarks may provide deeper insights into the company's asset management practices.