Vir Biotechnology Inc (VIR)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | 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 |
| 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 |
| Receivables | US$ in thousands | — | — | — | — | — | — | 7,000 | 1,223,160 | 773,079 | 93,003 | — | 112,500 | — | — | — |
| 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 |
| 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 |
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 of Vir Biotechnology Inc has exhibited fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger liquidity position.
In Q3 2023, the quick ratio was 10.64, which suggests the company had significant liquid assets compared to its current liabilities. This high quick ratio indicates a healthy liquidity position, providing the company with the ability to handle any short-term financial obligations efficiently.
In Q2 2023, the quick ratio decreased to 8.57, still reflecting a robust liquidity position but slightly lower than the previous quarter's exceptional performance. The company maintained a strong ability to meet short-term obligations with its current liquid assets.
Q1 2023 saw a notable decline in the quick ratio to 4.84. While still above the typical industry standard of 1, this decrease may indicate a potential decrease in the company's ability to cover its short-term liabilities solely with its liquid assets. It is important for the company to monitor this trend in liquidity.
Comparing Q4 2023 to the same quarter in the previous year, there was a significant improvement in the quick ratio. In Q4 2022, the quick ratio was 4.87, which has more than doubled by Q4 2023 to reach 8.98. This substantial increase indicates a substantial enhancement in the company's liquidity position over the year.
Overall, the trend in Vir Biotechnology Inc's quick ratio demonstrates a generally strong liquidity position, with some fluctuations quarter to quarter. It is essential for the company to maintain a healthy quick ratio to ensure it can meet its short-term obligations efficiently and sustain its operational activities.
Peer comparison
Dec 31, 2023