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.
Peer comparison
Dec 31, 2024