Vir Biotechnology Inc (VIR)

The liquidity ratios of Vir Biotechnology Inc for the past five years indicate the firm's ability to meet its short-term obligations using its current assets.

The current ratio has been consistently high, indicating that the company has more than enough current assets to cover its current liabilities. The ratio has shown a fluctuating trend, with a significant increase in 2023 compared to the previous year. This suggests that Vir Biotechnology has improved its short-term liquidity position.

Similarly, the quick ratio, which is a more conservative measure of liquidity that excludes inventory from current assets, follows a similar trend to the current ratio. The quick ratio also shows a strong liquidity position, with the company having almost 9 times more quick assets than current liabilities in 2023.

The cash ratio, which provides the most stringent test of liquidity by considering only cash and cash equivalents, also demonstrates strong liquidity for Vir Biotechnology. The company has consistently maintained a high cash ratio, indicating a strong ability to cover its current liabilities with its available cash.

Overall, based on the liquidity ratios analysis, Vir Biotechnology Inc appears to have a robust liquidity position, with ample current assets to meet its short-term obligations. The increasing trend in these ratios over the years suggests an improvement in the company's liquidity management and financial health.

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Additional liquidity measure

The cash conversion cycle for Vir Biotechnology Inc has fluctuated significantly over the past five years. In 2019 and 2020, the company had a cash conversion cycle of 0 days, indicating that it was able to efficiently convert its investments in inventory and receivables into cash. However, in 2021, there was a significant increase to 221.46 days, suggesting a deterioration in the company's ability to convert its resources into cash.

The situation improved in 2022 when the cash conversion cycle decreased to -16.02 days, signifying a more efficient management of working capital. This was a notable improvement compared to the previous year. In 2023, there was a further improvement with a cash conversion cycle of -836.13 days, indicating a very efficient conversion of investments into cash.

Overall, the trend in the cash conversion cycle for Vir Biotechnology Inc shows fluctuations, with significant improvements in efficiency in recent years. The negative values in 2022 and 2023 indicate that the company is managing its working capital effectively and may be converting investments into cash more quickly than in previous years.