Vir Biotechnology Inc (VIR)
Operating profit margin
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Operating income | US$ in thousands | -684,305 | 833,068 | 420,751 | -296,980 | -177,979 |
Revenue | US$ in thousands | 86,180 | 1,615,800 | 1,095,420 | 76,368 | 8,091 |
Operating profit margin | -794.04% | 51.56% | 38.41% | -388.88% | -2,199.72% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-684,305K ÷ $86,180K
= -794.04%
The operating profit margin of Vir Biotechnology Inc has fluctuated significantly over the past five years. In 2023, the company reported a negative operating profit margin of -794.04%, indicating that its operating expenses exceeded its revenues, resulting in a loss from core operations. This steep decline from the positive margins in the previous two years raises concern about the company's cost management and revenue generation strategies.
In 2022, Vir Biotechnology Inc achieved a healthy operating profit margin of 51.56%, demonstrating strong operational efficiency and profitability. The company was able to generate substantial profit from its core business activities relative to its total revenue during this period. However, the sharp drop in 2023 highlights the challenges faced by the company in maintaining consistent profitability.
Similarly, in 2021, the operating profit margin was at a commendable level of 38.41%, reflecting efficient cost control and revenue generation practices. This positive trend indicates that Vir Biotechnology Inc was effectively managing its operating expenses while generating solid revenues.
Conversely, in 2020 and 2019, the company reported negative operating profit margins of -388.88% and -2,199.72% respectively. These figures suggest that Vir Biotechnology Inc experienced significant losses from its core operations in those years. The extraordinary magnitude of the negative margins in 2019 raises red flags about the company's financial health and operational performance during that period.
Overall, the analysis of Vir Biotechnology Inc's operating profit margin reveals a mixed performance over the past five years, with fluctuations between positive and negative margins. The recent sharp decline in 2023 warrants further investigation into the underlying factors impacting the company's operational profitability and sustainability.
Peer comparison
Dec 31, 2023