Vir Biotechnology Inc (VIR)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 241,576 | 452,100 | 666,949 | 824,913 | 848,631 | 963,735 | 1,505,180 | 812,355 | 347,815 | 714,521 | 741,951 | 521,396 | 436,575 | 462,521 | 371,781 |
| Short-term investments | US$ in thousands | 1,388,420 | 1,247,900 | 1,233,050 | 1,475,090 | 1,551,370 | 1,436,260 | 794,817 | 587,645 | 561,685 | 224,979 | 134,749 | 211,604 | 300,325 | 364,079 | 180,619 |
| Total current liabilities | US$ in thousands | 175,407 | 165,050 | 225,623 | 485,288 | 511,029 | 308,203 | 477,868 | 702,361 | 341,242 | 233,724 | 146,024 | 361,099 | 99,064 | 76,998 | 54,940 |
| Cash ratio | 9.29 | 10.30 | 8.42 | 4.74 | 4.70 | 7.79 | 4.81 | 1.99 | 2.67 | 4.02 | 6.00 | 2.03 | 7.44 | 10.74 | 10.05 |
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 measures a company's ability to cover its short-term obligations with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term liabilities.
Analyzing Vir Biotechnology Inc's cash ratio over the past eight quarters, we observe fluctuations in the ratio. In Q4 2023, the cash ratio stands at 8.98, which indicates a strong position in terms of liquidity compared to the previous quarter's ratio of 10.64. This suggests that the company has a sufficient level of cash to cover its short-term debts.
Looking back further, we can see that the cash ratio has shown some volatility over the quarters, with highs and lows in different periods. Q3 2022 had the highest cash ratio of 7.79, indicating a robust liquidity position at that time. On the other hand, Q1 2022 had a significantly lower cash ratio of 1.89, reflecting a relatively weaker liquidity position.
Overall, Vir Biotechnology Inc's cash ratio has fluctuated over the past eight quarters, but it generally indicates that the company has maintained a reasonable level of liquidity to meet its short-term obligations. It is important for stakeholders to monitor these trends to assess the company's financial health and ability to manage its short-term liquidity effectively.
Peer comparison
Dec 31, 2023