Vir Biotechnology Inc (VIR)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,765	146,319	65,865	0	0
Payables	US$ in thousands	6,334	6,422	6,521	5,077	5,881
Payables turnover		0.44	22.78	10.10	0.00	0.00

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,765K ÷ $6,334K
= 0.44

Payables turnover is a financial ratio that measures how efficiently a company pays its suppliers. A higher payables turnover indicates that a company is paying its suppliers more frequently, which can reflect strong liquidity and possibly good relationships with vendors.

For Vir Biotechnology Inc, the payables turnover has fluctuated significantly over the past five years. In 2023, the payables turnover was 0.44, indicating that the company took approximately 0.44 times to pay off its suppliers during the year. This suggests a slower payment cycle compared to the previous years.

In 2022, the payables turnover was significantly higher at 22.78, showing that the company paid its suppliers much more frequently during that year. This abrupt increase may be due to various factors such as changes in management practices or payment terms with suppliers.

In 2021, the payables turnover was 10.10, which remained at a relatively high level compared to the ratios in 2020 and earlier. This could indicate that the company continued to manage its payables efficiently during this period.

Notably, in both 2020 and 2019, the payables turnover was recorded as 0.00, which suggests that the company did not have trade payables during those years or that the data was not available or reliable.

Overall, the fluctuating pattern of payables turnover for Vir Biotechnology Inc reflects varying payment practices and relationships with suppliers over the years. It is essential for the company to analyze these trends further to ensure effective management of payables and maintain favorable supplier relations.