Vir Biotechnology Inc (VIR)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,590,240 | 2,077,960 | 1,431,850 | 716,852 | 423,942 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,590,240K)
= 0.00
The debt-to-capital ratio for Vir Biotechnology Inc has consistently been 0.00 for the past five years, indicating that the company has not utilized any debt to finance its operations relative to its capital structure. This suggests that the company has relied primarily on equity financing rather than taking on debt to fund its operations or expansion. While a low debt-to-capital ratio can be viewed positively as it signifies lower financial risk and potential for financial distress, it is essential to assess the company's overall capital structure and financing strategy to understand the full picture of its financial health and decision-making processes. Furthermore, the stability of the debt-to-capital ratio over the years may indicate a deliberate capital structure policy or conservative financial management approach by Vir Biotechnology Inc.
Peer comparison
Dec 31, 2023