Vir Biotechnology Inc (VIR)

Short-term

Turnover ratios

The analysis of Vir Biotechnology Inc's activity ratios provides insights into the efficiency of the company's operations.

1. Inventory Turnover:
- The inventory turnover ratio reflects how well Vir Biotechnology is managing its inventory. The higher the turnover, the better, as it indicates that the company is selling products quickly.
- The ratio shows improvement from September 2021 to June 2023, indicating more efficient inventory management during this period.
- A sharp increase in June 2023 to 185.14 suggests a significant improvement in inventory turnover efficiency, possibly due to better demand forecasting or streamlined operations.

2. Receivables Turnover:
- The lack of data for receivables turnover indicates that information on how quickly the company collects on its receivables is not available for analysis.
- More data points would be needed to assess the efficiency of Vir Biotechnology in collecting payments from customers.

3. Payables Turnover:
- Similar to receivables turnover, the absence of data for payables turnover restricts the analysis of how quickly the company pays its vendors or suppliers.
- Further information would be required to evaluate Vir Biotechnology's payment practices and liquidity management.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate sales.
- Vir Biotechnology's working capital turnover ratio shows fluctuations over the years, with significant peaks and drops.
- An increase in the ratio indicates that the company is utilizing its working capital more effectively to generate revenue.

In conclusion, the analysis of Vir Biotechnology Inc's activity ratios suggests that the company has shown improvements in inventory turnover and working capital turnover, indicating enhanced operational efficiency. However, the lack of data for receivables and payables turnover limits a comprehensive assessment of the company's overall working capital management and liquidity practices.

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Average number of days

Based on the provided data for Vir Biotechnology Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH measures how efficiently a company manages its inventory.
- Vir Biotechnology Inc had 11.00 days of inventory on hand as of March 31, 2021, which increased to 15.63 days by December 31, 2021.
- There was a significant increase in September 30, 2023, where the DOH spiked to 384.71 days, which could indicate potential issues with inventory management or changes in the business operations.

2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for a company to collect revenue after a sale.
- The data provided shows that DSO was unavailable for the periods provided, indicating a lack of information to assess how quickly the company collects its receivables.

3. Number of Days of Payables:
- This ratio shows how long a company takes to pay its suppliers.
- However, the data indicates that the number of days of payables was also unavailable for the periods specified, so it is not possible to assess the company's payment practices based on the given information.

In summary, based on the available data, we can see fluctuations in the inventory management of Vir Biotechnology Inc over the periods provided. However, the lack of information on DSO and payables prevents a comprehensive analysis of the company's activity ratios related to receivables and payables.

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Long-term

The Fixed Asset Turnover ratio is a measure of how efficiently a company generates revenue from its fixed assets. For Vir Biotechnology Inc, this ratio has shown significant fluctuations over the years. The ratio was very low in the beginning, indicating poor utilization of fixed assets, but it has been steadily increasing since March 2021, reaching a peak of 35.32 in March 2022. However, the ratio has started to decline again in the following periods, indicating a potential decrease in efficiency in generating revenue from fixed assets.

On the other hand, the Total Asset Turnover ratio measures how efficiently a company generates revenue from all its assets. Vir Biotechnology Inc's Total Asset Turnover ratio has also fluctuated over the years, with a general increasing trend from June 2021 to December 2022. The ratio peaked at 0.88 in September 2022, indicating efficient utilization of total assets to generate revenue. However, the ratio has decreased in the most recent periods, suggesting a potential decline in efficiency in generating revenue from total assets.

Overall, the trend in both Fixed Asset Turnover and Total Asset Turnover ratios for Vir Biotechnology Inc shows fluctuations and potential inefficiencies in utilizing assets to generate revenue. It is important for the company to closely monitor these ratios and take necessary steps to improve asset utilization efficiency for sustainable growth and profitability.