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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
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	168,418	109,335	93,698
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	187,193	274,101	226,502
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	56,396	59,206	44,316
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	6.31	6.48	7.23

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.