Vir Biotechnology Inc (VIR)

Operating return on assets (Operating ROA)

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
Total assets US$ in thousands 1,919,060 2,802,090 1,954,270 918,761 512,071
Operating ROA -35.66% 29.73% 21.53% -32.32% -34.76%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $-684,305K ÷ $1,919,060K
= -35.66%

Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating profits from its assets. Vir Biotechnology Inc's Operating ROA has fluctuated over the past five years. In 2023, the company reported a negative operating ROA of -35.66%, indicating that the operating profits generated by its assets were insufficient to cover the costs associated with those assets. This negative value suggests operational inefficiency or a significant decline in profitability compared to the previous year.

In 2022, Vir Biotechnology Inc's Operating ROA was 29.73%, reflecting a strong ability to generate operating profits relative to its assets. This suggests effective asset utilization and profitability during the year. The company's performance in 2021 was also positive with an Operating ROA of 21.53%, indicating continued efficiency in generating operating profits from its assets.

Conversely, in 2020 and 2019, Vir Biotechnology Inc reported negative Operating ROA values of -32.32% and -34.76%, respectively. These results suggest that the company struggled to generate sufficient operating profits from its assets in those years, potentially due to higher operating expenses or lower revenues.

Overall, Vir Biotechnology Inc's Operating ROA has shown variability over the past five years, with periods of strong performance and periods of operational challenges. It is essential for the company to focus on improving operational efficiency and maximizing returns from its assets to drive sustained profitability and long-term value creation for its stakeholders.