Vir Biotechnology Inc (VIR)

The cash conversion cycle for Vir Biotechnology Inc has been fluctuating significantly over the past five years. In 2023, the cash conversion cycle stands at -836.13 days, indicating that the company is operating with negative working capital, which may suggest efficient management of cash flow and inventory. This significant negative value implies that the company is able to collect cash from sales and convert inventory into cash much faster than it pays its creditors.

In 2022, the cash conversion cycle improved to -16.02 days, possibly due to better inventory management or more efficient accounts receivable collection. This improvement suggests that the company was able to convert its inventory into sales and then into cash at a faster rate compared to the previous year.

However, in 2021, the cash conversion cycle increased to 221.46 days, indicating a potential delay in collecting receivables or managing inventory efficiently. This suggests a longer time taken for the company to convert its investments in raw materials into cash from sales.

In 2020, the cash conversion cycle was at 0 days, indicating that on average, the company was able to collect cash from customers at the same rate as it paid its suppliers. This balancing act suggests effective management of working capital.

Similarly, in 2019, the cash conversion cycle was also at 0 days, implying an efficient conversion of inventory into sales and subsequently into cash.

Overall, the trend in Vir Biotechnology Inc's cash conversion cycle shows variability, with periods of efficiency and inefficiency in managing working capital. The recent negative cash conversion cycle in 2023 indicates strong cash management practices, but historical fluctuations highlight the importance of continuous monitoring and improvement in working capital management strategies.

Peer comparison

Dec 31, 2023