Vir Biotechnology Inc (VIR)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 73,109 78,618 72,140 56,343 46,679 51,681 427,211 397,246 1,580,474 2,368,441 2,099,722 2,316,395 1,087,060 277,605 175,080 67,363 67,245 67,315 67,364 1,181
Total current assets US$ in thousands 1,042,460 1,047,160 1,205,740 1,213,100 1,588,230 1,769,180 1,946,330 2,358,630 2,519,080 2,413,620 2,288,270 2,567,550 1,562,820 1,066,340 862,295 993,114 772,365 849,572 578,761 377,541
Total current liabilities US$ in thousands 119,662 117,161 96,412 94,068 175,407 165,050 225,623 485,288 511,029 308,203 477,868 702,361 341,242 233,724 146,024 361,099 99,064 76,998 54,940 56,396
Working capital turnover 0.08 0.08 0.07 0.05 0.03 0.03 0.25 0.21 0.79 1.12 1.16 1.24 0.89 0.33 0.24 0.11 0.10 0.09 0.13 0.00

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $73,109K ÷ ($1,042,460K – $119,662K)
= 0.08

The working capital turnover ratio for Vir Biotechnology Inc has been fluctuating over the period from March 31, 2020, to December 31, 2024. The ratio started at a very low level of 0.00 on March 31, 2020, indicating inefficient utilization of working capital towards generating revenue.

However, there has been a gradual improvement in the working capital turnover ratio from June 30, 2020, where it increased to 0.13 and continued to rise to 1.24 by March 31, 2022, showing a significant enhancement in the efficiency of working capital utilization. This could be attributed to better management of working capital components such as inventory, accounts receivable, and accounts payable.

Subsequently, the ratio decreased to 0.03 on December 31, 2023, suggesting a potential decline in the company's ability to generate revenue using its working capital effectively. This decline continued into the following periods, with the ratio ranging between 0.05 to 0.08 from March 31, 2024, to December 31, 2024.

Overall, the working capital turnover ratio for Vir Biotechnology Inc indicates a mixed performance in efficiently utilizing working capital for generating sales revenue, with periods of improvement followed by declines. It is crucial for the company to analyze the reasons behind these fluctuations and take necessary actions to maintain a consistent and optimal level of working capital turnover.