Vir Biotechnology Inc (VIR)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-615,117	515,837	528,584	-298,665	-174,683
Total stockholders’ equity	US$ in thousands	1,590,240	2,077,960	1,431,850	716,852	423,942
ROE		-38.68%	24.82%	36.92%	-41.66%	-41.20%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-615,117K ÷ $1,590,240K
= -38.68%

Vir Biotechnology Inc's return on equity (ROE) has fluctuated significantly over the past five years. In 2023, the ROE stood at -38.68%, indicating a negative return on equity which may be a cause for concern as it suggests the company's net income is not generating a positive return relative to shareholders' equity.

In contrast, the ROE was positive in the previous years, with a notable high of 36.92% in 2021 and 24.82% in 2022. These positive ROE figures suggest that the company was effectively utilizing shareholders' equity to generate profits during those years.

However, the negative ROE in 2020 and 2019 at -41.66% and -41.20% respectively, indicate that during those periods, the company was experiencing losses relative to shareholders' equity, which could be a red flag for investors.

Overall, the fluctuating ROE trend indicates that Vir Biotechnology Inc's profitability and efficiency in generating returns from shareholders' equity have been inconsistent in recent years, and investors should closely monitor the company's financial performance and management strategies to understand the reasons behind these fluctuations.