Vir Biotechnology Inc (VIR)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 312,332 | 241,576 | 848,631 | 347,815 | 436,575 |
| Short-term investments | US$ in thousands | 678,051 | 1,280,830 | 1,553,410 | 360,330 | 300,286 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 119,662 | 175,407 | 511,029 | 341,242 | 99,064 |
| Quick ratio | 8.28 | 8.68 | 4.70 | 2.08 | 7.44 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($312,332K
+ $678,051K
+ $—K)
÷ $119,662K
= 8.28
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated by dividing quick assets (cash, cash equivalents, and accounts receivable) by current liabilities.
Based on the data provided, Vir Biotechnology Inc's quick ratio has fluctuated over the years.
- As of December 31, 2020, the quick ratio was 7.44, indicating a strong ability to cover short-term liabilities with quick assets.
- By December 31, 2021, the quick ratio decreased significantly to 2.08, suggesting a decline in the company's liquidity position compared to the previous year.
- However, in the following year, by December 31, 2022, the quick ratio improved to 4.70, reflecting a better ability to meet short-term obligations with liquid assets.
- The trend continued to improve, reaching 8.68 by December 31, 2023, and then slightly decreasing to 8.28 by December 31, 2024.
Overall, the quick ratio fluctuated but generally showed a strong ability to cover short-term liabilities with liquid assets, indicating a healthy liquidity position for Vir Biotechnology Inc during the period under review.
Peer comparison
Dec 31, 2024