Vir Biotechnology Inc (VIR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 9.05 | 10.72 | 8.63 | 4.86 | 4.93 | 7.83 | 4.79 | 3.66 | 4.58 | 4.56 | 5.91 | 2.75 | 7.80 | 11.03 | 10.53 |
| Quick ratio | 9.29 | 10.30 | 8.42 | 4.74 | 4.70 | 7.79 | 4.83 | 3.73 | 4.93 | 4.42 | 6.00 | 2.34 | 7.44 | 10.74 | 10.05 |
| 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 |
Based on the provided data, it is evident that Vir Biotechnology Inc has consistently strong liquidity ratios across multiple quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has ranged from 4.86 to 10.72 over the past eight quarters. This indicates that the company has more than enough current assets to cover its current liabilities.
Similarly, the quick ratio, also known as the acid-test ratio, which excludes inventory from current assets to provide a more stringent measure of liquidity, has been consistently high, ranging from 4.84 to 10.64. This demonstrates that Vir Biotechnology Inc has a strong ability to meet its short-term obligations with its most liquid assets.
Furthermore, the cash ratio, which specifically focuses on the company's ability to cover its current liabilities with its cash and cash equivalents, has also been robust, ranging from 1.89 to 10.64. This suggests that the company holds a significant amount of cash relative to its current liabilities, further reinforcing its liquidity position.
Overall, based on the analysis of these liquidity ratios, Vir Biotechnology Inc appears to maintain a strong financial position in terms of its ability to meet short-term obligations and manage liquidity effectively.
Additional liquidity measure
| 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 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 |
The cash conversion cycle of Vir Biotechnology Inc has shown a significant fluctuation over the previous quarters. In Q4 2023, the company had a negative cash conversion cycle of -836.13 days, indicating that Vir Biotechnology was able to convert its investments in inventory and accounts receivable into cash much faster than it needed to pay its suppliers. This may suggest efficient working capital management and good liquidity.
However, this extreme negative figure in Q4 2023 contrasts sharply with the trend seen in the preceding quarters, where the cash conversion cycle was much closer to breakeven or even positive, indicating a less efficient conversion of investments into cash.
The drastic improvement in the cash conversion cycle from negative figures in the earlier quarters to more reasonable levels in Q1 and Q2 2022 may be a positive sign of streamlining operations and managing working capital more effectively.
It is essential for Vir Biotechnology Inc to closely monitor and manage its cash conversion cycle to ensure optimal utilization of resources and maintain healthy liquidity levels in the long term. Any drastic fluctuations should be analyzed to identify underlying operational or strategic issues that may impact the company's financial performance and stability.