Vir Biotechnology Inc (VIR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 98.86% | 96.79% | 90.74% | 93.94% | 100.00% |
| Operating profit margin | -791.27% | -794.04% | 52.71% | 25.47% | -388.88% |
| Pretax margin | -704.95% | -728.93% | 47.73% | 50.58% | -391.02% |
| Net profit margin | -703.40% | -713.69% | 32.64% | 48.62% | -391.09% |
Vir Biotechnology Inc's profitability ratios have shown fluctuations over the years.
1. Gross Profit Margin: The company's gross profit margin has ranged from 90.74% to 100.00% over the last five years, indicating a high level of efficiency in generating profits after accounting for the cost of goods sold. However, there was a slight decrease in the margin in 2024 to 98.86%.
2. Operating Profit Margin: Vir Biotechnology Inc's operating profit margin has shown significant volatility, ranging from -794.04% to 52.71%. The company faced losses in operating profit margins in 2020 and 2024, which indicates inefficiencies in controlling operating expenses.
3. Pre-tax Margin: The pre-tax margin also displayed fluctuations, with figures ranging from -728.93% to 50.58%. The company experienced significant losses before tax in 2020 and 2023, impacting overall profitability.
4. Net Profit Margin: Vir Biotechnology Inc's net profit margin showed inconsistency, ranging from -713.69% to 48.62%. The company incurred substantial losses in net profits in 2020 and 2023, reflecting challenges in generating bottom-line earnings.
Overall, the company's profitability ratios reflect mixed performance, with periods of high efficiency in generating profits followed by significant losses in certain years. It is essential for Vir Biotechnology Inc to focus on cost management and revenue generation strategies to improve its overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -41.98% | -35.66% | 29.73% | 14.17% | -32.32% |
| Return on assets (ROA) | -37.31% | -32.05% | 18.41% | 27.05% | -32.51% |
| Return on total capital | -48.00% | -43.03% | 39.35% | 28.55% | -41.67% |
| Return on equity (ROE) | -45.37% | -38.68% | 24.82% | 36.92% | -41.66% |
Vir Biotechnology Inc's profitability ratios show mixed performance over the past five years.
1. Operating return on assets (Operating ROA) improved significantly from -32.32% in 2020 to 29.73% in 2022, indicating better utilization of assets to generate operating income. However, there was a sharp decline in 2023 and 2024, resulting in negative figures.
2. Return on assets (ROA) experienced a similar trend, with a notable improvement from -32.51% in 2020 to 27.05% in 2021. Subsequently, the ratio decreased in 2023 and 2024, reflecting challenges in generating profits relative to the total assets.
3. Return on total capital showed a positive trajectory, increasing from -41.67% in 2020 to 39.35% in 2022, suggesting effective use of both debt and equity to generate returns. However, the ratio declined in 2023 and 2024, indicating potential inefficiencies in capital deployment.
4. Return on equity (ROE) exhibited a similar pattern to the other ratios, with a notable improvement from -41.66% in 2020 to 36.92% in 2021. Subsequently, there was a decline in 2023 and 2024, implying lower profitability relative to shareholders' equity.
Overall, while there were periods of significant improvement in profitability ratios, Vir Biotechnology Inc faced challenges in maintaining consistent performance, as evidenced by the declining ratios in the latter years. It is essential for the company to address the factors contributing to the deteriorating profitability to sustain long-term financial health and shareholder value.