Vir Biotechnology Inc (VIR)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 96.79% | 93.30% | 93.85% | 87.39% | 91.06% | 91.79% | 91.42% | 93.29% | 93.99% | 96.84% | 99.37% | 100.00% | 100.00% | 100.00% | 87.72% |
| Operating profit margin | -794.04% | -585.67% | -64.01% | -72.96% | 51.62% | 65.43% | 62.06% | 68.50% | 38.41% | -91.21% | -160.71% | -528.33% | -388.88% | -333.71% | -282.86% |
| Pretax margin | -728.93% | -554.76% | -55.98% | -69.97% | 46.74% | 61.08% | 63.85% | 70.53% | 50.19% | -35.78% | -162.62% | -537.14% | -391.02% | -339.29% | -293.38% |
| Net profit margin | -713.76% | -505.67% | -53.40% | -32.36% | 31.97% | 48.07% | 51.17% | 52.29% | 48.25% | -35.98% | -162.75% | -537.46% | -391.09% | -339.60% | -293.64% |
Vir Biotechnology Inc's profitability ratios show a significant fluctuation over the quarters analyzed. Starting with the gross profit margin, the company experienced a high average of around 92% in 2022, with a noticeable increase in Q4 2023 to 96.79%. This indicates that Vir Biotechnology is adept at controlling its production costs and generating a high percentage of revenue as gross profit.
However, when looking at the operating profit margin, it is evident that the company struggled to control its operating expenses, with figures consistently negative from Q1 2022 to Q4 2023. The most notable decline was seen in Q4 2023, reaching -794.04%, indicating that the company's operating costs significantly exceeded its gross profit, resulting in substantial operational losses.
Similarly, the pretax margin and net profit margin also showed negative figures consistently across the quarters analyzed. The trend improved slightly from Q4 2023 compared to previous quarters, but both margins remained highly negative, reflecting the company's challenge in generating profits after accounting for all expenses and taxes.
Overall, Vir Biotechnology Inc's profitability ratios reveal a struggling financial performance, marked by high costs relative to revenue generation, resulting in significant operating, pretax, and net losses. Management may need to focus on cost-control measures and enhancing revenue streams to improve the company's profitability in the future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (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% |
| Return on assets (ROA) | -32.05% | -29.38% | -11.68% | -5.39% | 18.41% | 42.39% | 41.15% | 42.12% | 27.05% | -8.45% | -28.12% | -34.37% | -32.51% | -27.22% | -32.80% |
| Return on total capital | -43.03% | -41.54% | -17.35% | -16.45% | 40.09% | 72.35% | 66.96% | 79.62% | 29.39% | -29.60% | -39.82% | -58.94% | -41.43% | -31.06% | -37.67% |
| Return on equity (ROE) | -38.68% | -35.86% | -14.47% | -7.29% | 24.82% | 53.15% | 55.22% | 60.78% | 36.92% | -11.68% | -40.33% | -59.96% | -41.66% | -31.61% | -39.11% |
Vir Biotechnology Inc's profitability ratios show a declining trend over the past quarters. The operating return on assets (Operating ROA) has been negative, indicating inefficiency in generating profits from its assets, with Q4 2023 and Q3 2023 showing the lowest values at -35.66% and -34.03%, respectively.
The return on assets (ROA) has also been negative, reflecting the company's overall unprofitability in utilizing its assets to generate earnings. The lowest ROA was observed in Q4 2023 at -32.05%.
The return on total capital, another measure of profitability, follows a similar trend of decline with negative values in the last two quarters, indicating that the company is not efficiently utilizing its total capital to generate returns for shareholders.
Return on equity (ROE), a measure of how well the company is generating profits from shareholders' equity, has also decreased compared to previous periods. Q4 2023 and Q3 2023 had the lowest ROE values at -38.68% and -35.86%, respectively, indicating a decline in profitability for equity investors.
Overall, the declining trend in profitability ratios for Vir Biotechnology Inc raises concerns about its ability to generate adequate returns for both asset utilization and shareholder wealth creation.