Vir Biotechnology Inc (VIR)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	312,332	241,576	848,631	347,815	436,575
Short-term investments	US$ in thousands	678,051	1,280,830	1,553,410	360,330	300,286
Total current liabilities	US$ in thousands	119,662	175,407	511,029	341,242	99,064
Cash ratio		8.28	8.68	4.70	2.08	7.44

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($312,332K + $678,051K) ÷ $119,662K
= 8.28

The cash ratio for Vir Biotechnology Inc has shown fluctuations over the years, indicating varying levels of liquidity. Initially, in December 31, 2020, the cash ratio was at a healthy level of 7.44, suggesting that the company had a significant amount of cash and cash equivalents to cover its current liabilities. However, by December 31, 2021, the cash ratio decreased to 2.08, indicating a decline in liquidity and potential difficulties in meeting short-term obligations.

There was an improvement in the cash ratio by December 31, 2022, as it increased to 4.70, although it still remained below the level observed in 2020. This suggests that the company managed to enhance its liquidity position but may still need to further strengthen its cash reserves.

The trend reversed positively in the subsequent years, with the cash ratio reaching 8.68 by December 31, 2023, and 8.28 by December 31, 2024. These figures indicate a significant increase in liquidity compared to the previous years, reflecting the company's ability to effectively manage its cash resources and cover short-term obligations comfortably.

Overall, while the cash ratio of Vir Biotechnology Inc has experienced fluctuations, the recent upward trend suggests an improvement in the company's liquidity position and ability to meet its short-term financial commitments. It is essential for the company to maintain a strong cash position to ensure financial stability and operational flexibility.