Vir Biotechnology Inc (VIR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.22 | 1.21 | 1.35 | 1.36 | 1.28 |
Vir Biotechnology Inc's solvency ratios indicate a consistently strong financial position over the past five years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported as 0.00 for each year from 2020 to 2024. This suggests that the company has not taken on any long-term debt relative to its assets, capital, or equity during this period.
Furthermore, the Financial leverage ratio has remained relatively stable, ranging from 1.21 to 1.36 over the five-year period. This ratio signifies the company's reliance on debt financing compared to its equity. A ratio above 1 indicates higher leverage, but the values for Vir Biotechnology Inc are not excessively high, indicating a moderate level of financial risk.
Overall, based on these solvency ratios, it can be inferred that Vir Biotechnology Inc has maintained a prudent financial strategy with limited dependence on debt and a solid capital structure throughout the years analyzed.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 4.46 | 1.50 | -78.38 |
Based on the provided data, the interest coverage ratio of Vir Biotechnology Inc has exhibited significant fluctuations over the years. As of December 31, 2020, the company had a negative interest coverage ratio of -78.38, indicating that its operating income was insufficient to cover its interest expenses.
However, there has been a notable improvement in the company's interest coverage ratio since then. By December 31, 2021, the ratio increased to 1.50, suggesting that Vir Biotechnology's operating income was just able to cover its interest costs. This improvement continued into December 31, 2022, with the interest coverage ratio reaching 4.46, indicating a stronger ability to meet interest obligations.
Unfortunately, there is missing data for December 31, 2023 and December 31, 2024, which may limit our ability to provide a complete analysis of the trend. It is crucial for Vir Biotechnology Inc to maintain a healthy interest coverage ratio to ensure it can comfortably meet its interest payments and have a buffer for unexpected financial challenges. Further monitoring and analysis of this ratio in the coming years will be essential for assessing the company's financial health and sustainability.