Vir Biotechnology Inc (VIR)
Return on total capital
| 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 interest and tax (EBIT) (ttm) | US$ in thousands | -552,122 | -570,044 | -540,001 | -619,694 | -685,157 | -698,879 | -319,238 | -334,584 | 821,120 | 1,519,747 | 1,273,772 | 1,559,261 | 388,851 | -264,610 | -297,342 | -384,488 | -297,454 | -253,504 | -213,569 | -220,593 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,150,380 | 1,240,730 | 1,433,670 | 1,547,360 | 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 |
| Return on total capital | -47.99% | -45.94% | -37.67% | -40.05% | -43.09% | -41.72% | -17.64% | -16.98% | 39.52% | 70.69% | 65.25% | 77.92% | 27.16% | -30.20% | -40.33% | -59.07% | -41.49% | -31.21% | -37.88% | -58.00% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-552,122K ÷ ($—K + $1,150,380K)
= -47.99%
The return on total capital for Vir Biotechnology Inc has shown a significant fluctuation over the periods provided. The ratio was negative for most of the earlier quarters, indicating that the company was not effectively generating returns from its total capital. However, there was a notable turnaround in the latter part of 2021 and into 2022, with the return on total capital rising to positive levels, indicating that the company was able to effectively utilize its capital resources to generate returns.
The return on total capital peaked at 77.92% in March 31, 2022, and remained relatively high through the subsequent quarters of 2022. However, starting from the first quarter of 2023, the ratio turned negative again and continued to decline, reaching -47.99% by the end of December 31, 2024. This negative trend suggests that the company may have faced challenges in efficiently utilizing its capital to generate profits during this period.
Overall, the return on total capital for Vir Biotechnology Inc reflects a volatile performance, with periods of both strong and weak capital utilization. It is essential for the company to assess and improve its capital efficiency to ensure sustainable returns in the future.
Peer comparison
Dec 31, 2024