Vir Biotechnology Inc (VIR)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	86,180	1,615,800	1,095,420	76,368	8,091
Total current assets	US$ in thousands	1,588,230	2,519,080	1,562,820	772,365	402,995
Total current liabilities	US$ in thousands	175,407	511,029	341,242	99,064	59,206
Working capital turnover		0.06	0.80	0.90	0.11	0.02

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $86,180K ÷ ($1,588,230K – $175,407K)
= 0.06

The working capital turnover ratio of Vir Biotechnology Inc has fluctuated over the past five years. In 2023, the ratio dropped significantly to 0.06, indicating that the company generated $0.06 in revenue for every dollar of working capital. This could imply that the company's efficiency in utilizing its working capital to generate sales has declined compared to previous years.

In 2022 and 2021, the working capital turnover ratios were relatively high at 0.80 and 0.90, respectively, suggesting that the company was able to generate more revenue for each dollar of working capital during those years. This indicates a higher level of efficiency in managing its working capital to support its operations and sales activities.

However, in 2020 and 2019, the working capital turnover ratios were notably lower at 0.11 and 0.02, respectively. These lower ratios imply that the company may have faced challenges in efficiently utilizing its working capital to generate sales during those years.

Overall, the trend in Vir Biotechnology Inc.'s working capital turnover suggests some variability in the company's ability to efficiently convert its working capital into revenue over the past five years. It would be important for the company to analyze the factors contributing to these fluctuations and work on strategies to improve its working capital management efficiency in order to enhance its overall financial performance.