Vir Biotechnology Inc (VIR)

Pretax margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands -523,105 -539,187 -492,273 -550,006 -628,194 -659,075 -274,717 -310,815 754,280 1,451,807 1,344,837 1,640,424 549,802 -101,766 -297,115 -390,102 -298,611 -256,554 -220,294 -223,082
Revenue (ttm) US$ in thousands 73,109 78,618 72,140 56,343 46,679 51,681 427,211 397,246 1,580,474 2,368,441 2,099,722 2,316,395 1,087,060 277,605 175,080 67,363 67,245 67,315 67,364 1,181
Pretax margin -715.51% -685.83% -682.39% -976.17% -1,345.77% -1,275.28% -64.30% -78.24% 47.72% 61.30% 64.05% 70.82% 50.58% -36.66% -169.70% -579.10% -444.06% -381.12% -327.02% -18,889.25%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-523,105K ÷ $73,109K
= -715.51%

The pretax margin of Vir Biotechnology Inc has exhibited significant fluctuations over the reported periods. The company experienced consistently negative pretax margins from March 2020 to June 2022, reaching its lowest point at -1,345.77% in December 2023. This indicates that during these periods, the company's operating expenses and losses exceeded its revenues.

However, the trend shifted positively from December 2022 onwards, with the pretax margin rising to 47.72% by the end of December 2022. The company continued to improve its performance, achieving a pretax margin of 70.82% in March 2023, which reversed to negative values in the subsequent quarters until December 2024.

The positive pretax margins observed in the latter part of 2022 and early 2023 signify that Vir Biotechnology Inc managed to generate profits before accounting for taxes, showcasing its ability to control costs, increase revenues, or both. Nevertheless, the subsequent negative margins suggest challenges or losses in those periods. The fluctuating pretax margins indicate the company's evolving financial performance and the need for continual monitoring and strategic adjustments to sustain profitability.