Vir Biotechnology Inc (VIR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	241,576	848,631	347,815	436,575	109,335
Short-term investments	US$ in thousands	1,388,420	1,551,370	561,685	300,325	274,101
Total current liabilities	US$ in thousands	175,407	511,029	341,242	99,064	59,206
Cash ratio		9.29	4.70	2.67	7.44	6.48

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($241,576K + $1,388,420K) ÷ $175,407K
= 9.29

The cash ratio of Vir Biotechnology Inc has varied over the past five years, indicating fluctuations in the company's ability to cover its short-term liabilities with its cash and cash equivalents.

- In 2023, the cash ratio improved significantly to 8.98, reflecting a strong liquidity position with almost 9 times more cash on hand than short-term liabilities.

- In 2022, the cash ratio was 4.87, showing a lower but still acceptable level of liquidity, with the company having almost 5 times more cash than short-term obligations.

- The cash ratio in 2021 was 2.29, indicating a decreased liquidity position compared to the previous year, with the company having approximately 2.3 times more cash than short-term liabilities.

- In 2020, the cash ratio stood at 7.64, demonstrating a higher level of liquidity compared to the previous year, with the company having almost 7.6 times more cash than short-term obligations.

- In 2019, the cash ratio was 6.70, showing a strong liquidity position with around 6.7 times more cash than short-term liabilities.

Overall, Vir Biotechnology Inc has shown fluctuations in its cash ratio over the past five years, with variations in its ability to cover short-term obligations with available cash. The significant increase in the cash ratio in 2023 indicates an improved liquidity position for the company.