Vir Biotechnology Inc (VIR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 96.79% | 90.94% | 93.99% | 100.00% | 100.00% |
| Operating profit margin | -794.04% | 51.56% | 38.41% | -388.88% | -2,199.72% |
| Pretax margin | -728.93% | 46.68% | 50.19% | -391.02% | -2,157.08% |
| Net profit margin | -713.76% | 31.92% | 48.25% | -391.09% | -2,158.98% |
Vir Biotechnology Inc's profitability ratios have shown significant fluctuations over the past five years.
1. Gross Profit Margin:
- The company's gross profit margin has been relatively high, ranging from 90.94% to 100.00% in the last five years. This indicates that Vir Biotechnology has been able to efficiently control its production costs and generate strong revenues from its products.
2. Operating Profit Margin:
- The operating profit margin has varied significantly, with a sharp decline to -794.04% in 2023. This suggests that the company's operating expenses have exceeded its operating income, resulting in a negative operating profit margin. In the preceding years, the margins were positive, reflecting the company's ability to generate profits from its core operations.
3. Pretax Margin:
- The pretax margin has also experienced fluctuations, with a notable decrease to -728.93% in 2023. This indicates that the company incurred significant expenses or losses before accounting for taxes in that year. In the earlier years, the margins were positive, demonstrating the company's ability to generate income before considering tax expenses.
4. Net Profit Margin:
- The net profit margin has shown significant volatility, with a sharp decline to -713.76% in 2023. This indicates that Vir Biotechnology's net income was heavily impacted by expenses or losses, resulting in a negative net profit margin. In the preceding years, the margins were positive, although with some fluctuations, showcasing the company's ability to generate profits after accounting for all expenses.
Overall, although the company has demonstrated strong gross profit margins, it has faced challenges in managing its operating and net profit margins, leading to negative profitability ratios in the most recent year. Investors and analysts may need to closely monitor the company's cost management and revenue generation strategies to ensure sustainable profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -35.66% | 29.73% | 21.53% | -32.32% | -34.76% |
| Return on assets (ROA) | -32.05% | 18.41% | 27.05% | -32.51% | -34.11% |
| Return on total capital | -43.03% | 40.09% | 29.39% | -41.43% | -41.98% |
| Return on equity (ROE) | -38.68% | 24.82% | 36.92% | -41.66% | -41.20% |
The profitability ratios of Vir Biotechnology Inc indicate fluctuating performance over the past five years.
1. Operating return on assets (Operating ROA) has shown significant volatility, ranging from negative values such as -35.66% in 2023 and -32.32% in 2020 to positive values like 29.73% in 2022 and 21.53% in 2021. This indicates inconsistent operational efficiency in generating profits from its assets.
2. Return on assets (ROA) has also displayed variability, with negative figures observed in 2023 (-32.05%) and 2020 (-32.51%), and positive values recorded in 2022 (18.41%) and 2021 (27.05%). The company's ability to generate profits relative to its total assets has thus been unstable.
3. Return on total capital has been similarly erratic, with negative returns in 2023 (-43.03%) and 2020 (-41.41%), but positive in 2022 (40.09%) and 2021 (29.39%). This ratio reflects the efficiency of utilizing both debt and equity to generate profits, showing inconsistency over the years.
4. Return on equity (ROE) has also experienced fluctuations, ranging from negative values in 2023 (-38.68%) and 2020 (-41.66%) to positive figures in 2022 (24.82%) and 2021 (36.92%). This indicates varying profitability relative to shareholder investment, with the company not consistently generating returns for its equity holders.
Overall, the analysis of Vir Biotechnology Inc's profitability ratios suggests a lack of stable and sustainable profitability over the years, indicating the need for management to address operational inefficiencies and enhance profitability in order to create value for investors.