Vir Biotechnology Inc (VIR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.21 | 1.35 | 1.36 | 1.28 | 1.21 |
Based on the solvency ratios provided for Vir Biotechnology Inc, it appears that the company has consistently maintained a very strong financial position in terms of its debt levels relative to assets, capital, and equity over the past five years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios are all at 0.00 for each year, indicating that the company has had no debt obligations in relation to its total assets, capital, or equity during this period.
However, the financial leverage ratio has shown some fluctuations over the years, ranging from 1.21 in 2019 to 1.36 in 2021. This ratio measures the company's financial risk and shows the extent to which the company is using debt to finance its operations. A higher financial leverage ratio indicates a higher level of debt relative to equity. Although the ratios are relatively low, the upward trend in the ratio from 2019 to 2021 may suggest an increase in financial risk for the company during those years.
Overall, while the debt ratios indicate a lack of debt financing, the increasing trend in the financial leverage ratio suggests a potential shift towards increased reliance on debt financing over the years, which may require closer monitoring to ensure financial stability and sustainability in the future.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | 4.55 | 1.54 | -77.93 | -22.34 |
The interest coverage ratio, calculated as EBIT (Earnings Before Interest and Taxes) divided by interest expense, provides insight into a company's ability to meet its interest obligations from its operating income. However, the absence of data on Vir Biotechnology Inc's interest coverage across the years impairs our ability to assess the company's ability to cover its interest expenses comfortably. To evaluate the company's financial health more effectively, it is crucial to obtain the specific values of EBIT and interest expenses for each year to calculate the interest coverage ratio. A consistent and positive interest coverage ratio is generally indicative of a company's robust financial position and its ability to meet its interest payments.