Vir Biotechnology Inc (VIR)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	9,622	14,215	14,203	9,913	7,244	7,963	30,178	58,077	146,319	197,200	182,783	156,006	200,727	144,151	206,999	285,508	208,452	261,901	231,080	181,232
Inventory	US$ in thousands	—	-5,300	0	—	—	8,393	163	-6,943	—	—	0	0	8,594	6,112	6,404	8,601	—	—	—	—
Inventory turnover		—	—	—	—	—	0.95	185.14	—	—	—	—	—	23.36	23.58	32.32	33.19	—	—	—	—

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $9,622K ÷ $—K
= —

Inventory turnover is a financial ratio that measures how effectively a company manages its inventory by evaluating how many times a company sells and replaces its inventory during a specific period. It is calculated by dividing the cost of goods sold by the average inventory level. A higher inventory turnover typically indicates efficient inventory management.

Analyzing Vir Biotechnology Inc's inventory turnover based on the provided data, we can see significant fluctuations in the ratio over the periods reported. In March 2021 and June 2021, the inventory turnover was relatively high at 33.19 and 32.32, respectively, indicating a rapid turnover of inventory during those periods.

However, the inventory turnover dropped notably in the subsequent quarters, notably in September 2021 and December 2021, where it decreased to 23.58 and 23.36, respectively. This decline suggests a slower pace of inventory turnover during those periods, which could potentially indicate either excess inventory levels or lower sales volumes.

The data then shows an extraordinary spike in inventory turnover in June 2023, reaching 185.14, which is a significant deviation from the previous figures. This surge could imply a sudden increase in sales relative to the average inventory level during that period.

Interestingly, the inventory turnover then dramatically fell to 0.95 in September 2023, indicating a slowdown in inventory turnover and potentially a buildup of excess inventory.

The absence of data for some quarters limits the complete analysis of Vir Biotechnology Inc's inventory turnover trend. However, based on the available information, it is apparent that the company experiences notable variations in inventory turnover, which could be influenced by factors such as sales performance, production efficiency, and inventory management practices.