Vir Biotechnology Inc (VIR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | 384.71 | 1.97 | — | — | — | — | — | 15.63 | 15.48 | 11.29 | 11.00 | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 384.71 | 1.97 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 15.63 | 15.48 | 11.29 | 11.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Vir Biotechnology Inc provides insight into how efficiently the company manages its working capital. Looking at the historical data, the company's cash conversion cycle remained consistently low or even at zero for the most part up until the end of March 2021. This indicates that the company was able to convert its resources into cash quickly.
However, starting from March 2021, there was a noticeable increase in the cash conversion cycle, reaching a peak of 384.71 days by the end of September 2023. This significant spike suggests that Vir Biotechnology Inc faced challenges in converting its investments in inventory and receivables into cash effectively during this period.
It is important to note that a high cash conversion cycle may indicate inefficiencies in managing inventory levels, collection of receivables, or payment of payables. This extended cycle can tie up working capital and impact the company's liquidity and operational efficiency.
Subsequently, the company was able to bring down the cash conversion cycle to 1.97 days by the end of June 2023, and it remained low or at zero thereafter, indicating improved efficiency in managing working capital.
Overall, Vir Biotechnology Inc should continue monitoring and managing its cash conversion cycle to ensure optimal utilization of resources and maintain a healthy financial position.
Peer comparison
Dec 31, 2024