Vir Biotechnology Inc (VIR)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Operating income (ttm)	US$ in thousands	-684,305	-695,791	-314,095	-324,131	833,070	1,555,324	1,306,975	1,593,214	420,751	-259,405	-293,635	-383,703	-296,980	-252,335	-212,400
Total assets	US$ in thousands	1,919,060	2,044,900	2,243,870	2,665,940	2,802,090	2,695,970	2,618,990	2,887,130	1,954,270	1,210,210	1,057,580	1,135,580	918,761	943,259	672,238	477,114	512,071	422,642
Operating ROA		-35.66%	-34.03%	-14.00%	-12.16%	29.73%	57.69%	49.90%	55.18%	21.53%	-21.43%	-27.76%	-33.79%	-32.32%	-26.75%	-31.60%

December 31, 2023 calculation

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

Operating return on assets (ROA) measures how efficiently a company is generating operating income from its assets. The data indicates significant fluctuations in Vir Biotechnology Inc's operating ROA over the past eight quarters.

In the most recent quarter, Q4 2023, the operating ROA was -35.66%, indicating that the company is generating a negative return on its assets from its primary business activities. This represents a decline from the previous quarter's -34.03%. The negative operating ROA suggests that Vir Biotechnology Inc's operating income is not sufficient to cover the cost of its assets.

The trend of decreasing operating ROA is evident when comparing the recent performance to the positive figures seen in the quarters of 2022. The company was generating a strong operating ROA in Q4 2022 at 29.73%, with a peak of 57.69% in Q3 2022. However, the operating ROA has been on a downward trajectory since then.

The negative operating ROA in the most recent quarters could indicate inefficiencies in operations or challenges in generating profits from the company's assets. Investors and stakeholders may need further insights into the company's operational performance and asset utilization strategies to assess the long-term sustainability of its business model.