Vir Biotechnology Inc (VIR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 241,576 | 848,631 | 347,815 | 436,575 | 109,335 |
| Short-term investments | US$ in thousands | 1,388,420 | 1,551,370 | 561,685 | 300,325 | 274,101 |
| Receivables | US$ in thousands | — | — | 773,079 | — | — |
| Total current liabilities | US$ in thousands | 175,407 | 511,029 | 341,242 | 99,064 | 59,206 |
| Quick ratio | 9.29 | 4.70 | 4.93 | 7.44 | 6.48 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($241,576K
+ $1,388,420K
+ $—K)
÷ $175,407K
= 9.29
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. A higher quick ratio indicates a stronger liquidity position.
The quick ratio of Vir Biotechnology Inc has shown fluctuations over the past five years, ranging from 4.55 to 8.98. In 2023, the quick ratio stood at a high of 8.98, implying that the company had $8.98 of liquid assets available to cover each dollar of its current liabilities. This significant increase compared to the previous years indicates a substantial improvement in the company's short-term liquidity position.
The quick ratio was relatively stable between 2019 and 2021, ranging between 6.70 and 7.64, indicating a consistently healthy liquidity position during those years. However, there was a notable increase in 2022 when the quick ratio jumped to 4.87, possibly suggesting a temporary decrease in the company's ability to cover its short-term obligations with liquid assets.
Overall, the trend in Vir Biotechnology Inc's quick ratio indicates fluctuations in the company's liquidity position, with a notable improvement in 2023. It is essential for stakeholders to closely monitor these fluctuations to assess the company's ability to meet its short-term financial commitments.
Peer comparison
Dec 31, 2023