Vir Biotechnology Inc (VIR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | 0.95 | 185.14 | — | — | — | — | — | 7.66 | 1.47 | — | 0.00 | — | — | — |
| Receivables turnover | — | — | — | — | — | — | 300.88 | 1.90 | 1.42 | 3.06 | — | 0.65 | — | — | — |
| 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 |
| Working capital turnover | 0.06 | 0.07 | 0.29 | 0.24 | 0.80 | 1.13 | 1.16 | 1.25 | 0.90 | 0.34 | 0.26 | 0.11 | 0.11 | 0.10 | 0.14 |
The activity ratios of Vir Biotechnology Inc for the past eight quarters show fluctuations and trends in the company's efficiency in managing its inventory, receivables, payables, and working capital.
1. Inventory Turnover: Data for inventory turnover is not available for any of the quarters, which limits the assessment of how efficiently Vir Biotechnology is managing its inventory levels and replenishing its stock.
2. Receivables Turnover: The receivables turnover ratio is not provided for any of the quarters except for Q2 2022 and Q1 2022. The sharp increase in receivables turnover from 1.90 in Q1 2022 to 301.17 in Q2 2022 indicates a significant improvement in collecting receivables, which might suggest a more efficient credit management or collection process during that period.
3. Payables Turnover: The payables turnover ratio demonstrates the relationship between purchases on credit and payments to suppliers. There is a decreasing trend in the payables turnover ratio over the quarters, indicating that the company is taking longer to pay its suppliers. While a low payables turnover ratio may imply favorable credit terms, it could also signal liquidity issues if payments are delayed for too long.
4. Working Capital Turnover: The working capital turnover ratio reflects how effectively the company is utilizing its working capital to generate revenue. The decreasing trend in the working capital turnover ratio over the quarters implies that the company's efficiency in using its working capital to generate sales has declined. Lower ratios may indicate slower sales growth in relation to the working capital employed.
In conclusion, while the data for inventory turnover and most of the receivables turnover are unavailable, the trend in payables turnover and working capital turnover ratios suggest potential areas of concern regarding inventory management, payment terms to suppliers, and utilization of working capital by Vir Biotechnology Inc. Further analysis in conjunction with other financial metrics would provide a more comprehensive assessment of the company's operational efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 384.71 | 1.97 | — | — | — | — | — | 47.63 | 248.43 | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | 1.21 | 191.95 | 257.60 | 119.36 | — | 565.40 | — | — | — |
| Number of days of payables | days | 836.13 | 166.25 | 149.52 | 76.35 | 16.02 | 5.04 | 21.20 | 25.63 | 36.14 | 171.73 | 3,519.83 | — | — | — | — |
Days of inventory on hand (DOH) for Vir Biotechnology Inc is not provided in the table for the specified periods, so we are unable to analyze the efficiency of inventory management.
Days of sales outstanding (DSO) decreased significantly from 191.95 days in Q1 2022 to 1.21 days in Q2 2022 before being omitted in subsequent periods. This improvement indicates that the company has been collecting its accounts receivable much faster, potentially due to more efficient credit and collection procedures.
The number of days of payables also varied widely over the periods, ranging from 5.04 days in Q3 2022 to 836.13 days in Q4 2023. The significant increase in payables days in Q4 2023 may indicate a delay in paying off suppliers. This could potentially point to liquidity or operational challenges, or strategic management of cash flow.
In conclusion, while the days of sales outstanding showed a positive trend, the fluctuating number of days of payables presents a concern for Vir Biotechnology Inc that warrants further investigation into its financial management practices.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.04 | 0.06 | 0.22 | 0.17 | 0.58 | 0.88 | 0.80 | 0.81 | 0.56 | 0.23 | 0.17 | 0.06 | 0.08 | 0.08 | 0.11 |
The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. In the case of Vir Biotechnology Inc, the fixed asset turnover ratio has been decreasing over the past quarters, indicating a decline in the company's ability to generate sales from its fixed assets. This could suggest that Vir Biotechnology Inc is not effectively utilizing its long-term assets to drive revenue.
On the other hand, the total asset turnover ratio reflects how efficiently a company uses all its assets to generate revenue. Similarly, Vir Biotechnology Inc's total asset turnover ratio has been on a downward trend, implying a decreasing efficiency in generating sales from its total assets. This could signal that the company may be facing challenges in efficiently utilizing its overall assets to drive revenue growth.
Overall, the decreasing trend in both the fixed asset turnover and total asset turnover ratios for Vir Biotechnology Inc indicates potential inefficiencies in the company's long-term asset management and utilization for revenue generation. Investors and analysts may need to further investigate the reasons behind these declining ratios to assess the company's operational performance and financial health accurately.