Vir Biotechnology Inc (VIR)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	-615,117	-600,747	-262,022	-143,740	515,837	1,142,694	1,077,810	1,216,116	528,584	-102,319	-297,356	-390,336	-298,665	-256,787	-220,492
Total stockholders’ equity	US$ in thousands	1,590,240	1,675,080	1,810,210	1,970,760	2,077,960	2,149,860	1,952,010	2,001,010	1,431,850	876,274	737,325	650,951	716,852	812,355	563,779	380,333	423,942	-280,797
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%

December 31, 2023 calculation

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

The return on equity (ROE) of Vir Biotechnology Inc has exhibited significant fluctuations over the past eight quarters. The ROE was negative in the most recent two quarters, standing at -38.68% in Q4 2023 and -35.86% in Q3 2023, indicating that the company generated a net loss relative to its shareholders' equity during these periods.

Furthermore, the ROE had declined from positive levels in the previous quarters, where it was -14.47% in Q2 2023 and -7.29% in Q1 2023. This downward trend suggests a deterioration in the company's ability to generate profits from the shareholders' equity over these periods.

In contrast, the ROE was positive and relatively high in the four quarters preceding the negative trend. It stood at 24.82% in Q4 2022, 53.15% in Q3 2022, 55.22% in Q2 2022, and 60.78% in Q1 2022. These figures indicate that Vir Biotechnology Inc was able to generate significant returns on the shareholders' equity during this period.

Overall, the fluctuation in ROE over the past eight quarters suggests that Vir Biotechnology Inc's profitability and efficiency in utilizing shareholders' equity have been volatile. Further analysis of the company's financial performance and operational strategies may be necessary to understand the underlying reasons for these fluctuations and to assess the company's future prospects.