Vir Biotechnology Inc (VIR)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-587,165	-684,305	833,068	276,891	-296,980
Total assets	US$ in thousands	1,398,810	1,919,060	2,802,090	1,954,270	918,761
Operating ROA		-41.98%	-35.66%	29.73%	14.17%	-32.32%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-587,165K ÷ $1,398,810K
= -41.98%

The operating return on assets (operating ROA) of Vir Biotechnology Inc has shown significant fluctuations over the years. In 2020, the company had a negative operating ROA of -32.32%, indicating that the company's operating income was insufficient to cover its assets.

However, by the end of 2021, Vir Biotechnology Inc managed to turn its performance around, achieving an operating ROA of 14.17%, which suggests that the company generated a positive return on its assets through its operations. The following year, in 2022, the operating ROA further improved to 29.73%, indicating increased efficiency in asset utilization and profitability.

In 2023, there was a significant decline in the operating ROA to -35.66%, reflecting a decrease in operational efficiency or profitability relative to the assets employed. Moreover, by the end of 2024, the company experienced a further deterioration in performance with an operating ROA of -41.98%, signaling a continued challenge in generating returns from its assets through operations.

Overall, the fluctuating trend in Vir Biotechnology Inc's operating ROA indicates varying levels of operational efficiency and profitability over the years, highlighting potential challenges in effectively utilizing its assets to generate returns. Continued monitoring of the company's financial performance and operational strategies may be necessary to address these fluctuations and enhance long-term profitability.