Vir Biotechnology Inc (VIR)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 8.71 | 8.94 | 12.51 | 12.90 | 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 | 6.69 |
| Quick ratio | 7.57 | 8.57 | 12.08 | 12.36 | 8.75 | 10.28 | 8.19 | 4.64 | 4.70 | 7.61 | 4.59 | 1.79 | 2.08 | 4.02 | 5.66 | 2.03 | 7.44 | 10.74 | 10.05 | 6.31 |
| Cash ratio | 7.57 | 8.57 | 12.08 | 12.36 | 8.75 | 10.28 | 8.19 | 4.64 | 4.70 | 7.61 | 4.59 | 1.79 | 2.08 | 4.02 | 5.66 | 2.03 | 7.44 | 10.74 | 10.05 | 6.31 |
Based on the provided data, we can analyze the liquidity ratios of Vir Biotechnology Inc over the period from March 31, 2020, to December 31, 2024:
1. Current Ratio: The current ratio measures the company's ability to cover its short-term liabilities with its current assets. Vir Biotechnology Inc's current ratio fluctuated during this period, ranging from a low of 2.75 on March 31, 2021, to a high of 12.90 on March 31, 2024. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered favorable for liquidity.
2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Vir Biotechnology Inc's quick ratio varied over the analyzed period, with values ranging from 1.79 on March 31, 2022, to 12.36 on March 31, 2024. A quick ratio above 1 suggests that the company can meet its short-term obligations without relying on the sale of inventory.
3. Cash Ratio: The cash ratio is the most conservative liquidity ratio, focusing only on the company's ability to cover its current liabilities with its cash and cash equivalents. Vir Biotechnology Inc's cash ratio also showed fluctuations, with values moving between 1.79 on March 31, 2022, and 12.36 on March 31, 2024. A cash ratio above 1 indicates that the company possesses sufficient cash to pay off its immediate obligations.
Overall, Vir Biotechnology Inc maintained relatively healthy liquidity levels during the analyzed period, with the current, quick, and cash ratios generally above 1, indicating a strong ability to cover short-term liabilities with current assets. However, it is essential to consider the specific industry norms and the company's operational requirements while interpreting these liquidity ratios.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 384.71 | 1.97 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 15.63 | 15.48 | 11.29 | 11.00 | 0.00 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle of Vir Biotechnology Inc has shown fluctuations over the past few years. The company's cash conversion cycle was consistently at 0 days from March 31, 2020, to December 31, 2022, indicating efficient management of its working capital during that period. However, there was a sudden increase in the cash conversion cycle to 384.71 days as of September 30, 2023, a significant deviation from the previous trend.
This spike in the cash conversion cycle suggests potential issues in managing the company's cash flow, inventory, and accounts receivable during that particular period. It is essential for the company to investigate the reasons behind this anomaly to ensure sustainable financial health and operational efficiency.
From December 31, 2023, onwards, the cash conversion cycle returned to 0 days, indicating a recovery in managing working capital effectively. Monitoring and maintaining a healthy cash conversion cycle is crucial for Vir Biotechnology Inc to sustain its operations, invest in growth opportunities, and meet its financial obligations efficiently.