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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
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	168,418	109,335	93,698
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	187,193	274,101	226,502
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	56,396	59,206	44,316
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	6.31	6.48	7.23

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.