Vir Biotechnology Inc (VIR)

Payables 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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cost of revenue (ttm)	US$ in thousands	2,765	7,963	30,178	58,077	146,319	197,200	182,783	156,006	65,857	8,980	1,144	0	0	-26,708	-17,488
Payables	US$ in thousands	6,334	3,627	12,362	12,149	6,422	2,722	10,618	10,955	6,521	4,225	11,032	3,701	5,077	6,796	4,382	18,768	5,881	5,815
Payables turnover		0.44	2.20	2.44	4.78	22.78	72.45	17.21	14.24	10.10	2.13	0.10	0.00	0.00	-3.93	-3.99

December 31, 2023 calculation

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

The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to its average accounts payable balance. A higher ratio indicates that the company is paying its suppliers more quickly.

Based on the data provided for Vir Biotechnology Inc, the payables turnover ratio has fluctuated significantly over the past eight quarters. In Q4 2023, the payables turnover ratio was 0.44, which indicates that the company took longer to pay its suppliers compared to the previous quarter. However, this is significantly lower than the ratios in Q2 2022 and Q1 2022, which were 72.45 and 17.22 respectively, indicating a trend of longer payment periods in recent quarters.

The significant fluctuations in the payables turnover ratio could be attributed to various factors such as changes in the company's payment terms with suppliers, shifts in the timing of accounts payable payments, or changes in the company's operating cycle. It is important for investors and analysts to monitor these changes in the payables turnover ratio to assess the company's liquidity management and supplier relationships.