Vir Biotechnology Inc (VIR)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 384.71 | 1.97 | — | — | — | — | — | 47.63 | 248.43 | — | — | — | — | — | |||
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | 1.21 | 191.95 | 257.60 | 119.36 | — | 565.40 | — | — | — | |||
| Number of days of payables | days | 836.13 | 166.25 | 149.52 | 76.35 | 16.02 | 5.04 | 21.20 | 25.63 | 36.14 | 171.73 | 3,519.83 | — | — | — | — | |||
| Cash conversion cycle | days | -836.13 | 218.46 | -147.55 | -76.35 | -16.02 | -5.04 | -19.99 | 166.32 | 269.09 | 196.06 | -3,519.83 | 565.40 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – 836.13
= -836.13
The cash conversion cycle of Vir Biotechnology Inc has varied over the quarters, ranging from negative to positive values. In Q4 2023, the cash conversion cycle was at -836.13 days, indicating that the company takes longer to convert its investments in inventory and other resources into cash than it takes to pay its obligations. This negative value suggests that the company may have efficient working capital management practices, enabling it to quickly convert its assets into cash.
However, in Q1 2022, the cash conversion cycle was 166.32 days, indicating that the company took over 5 months to convert its investments into cash. This positive value suggests that the company may have faced challenges in efficiently managing its working capital during that period.
Overall, the trend shows that Vir Biotechnology Inc has generally improved its efficiency in managing its working capital over the quarters, moving from positive cash conversion cycles to negative ones. This improvement may reflect better inventory management, faster collection of receivables, or more efficient payment of liabilities, all of which contribute to a healthier cash conversion cycle.
Peer comparison
Dec 31, 2023