Vir Biotechnology Inc (VIR)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,919,060	2,802,090	1,954,270	918,761	512,071
Total stockholders’ equity	US$ in thousands	1,590,240	2,077,960	1,431,850	716,852	423,942
Financial leverage ratio		1.21	1.35	1.36	1.28	1.21

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,919,060K ÷ $1,590,240K
= 1.21

The financial leverage ratio of Vir Biotechnology Inc has shown some fluctuations over the last five years. The ratio has ranged from 1.21 to 1.36 during this period. A higher financial leverage ratio indicates that a company relies more on debt financing rather than equity to fund its operations and growth.

In 2022 and 2021, the ratio increased to 1.35 and 1.36, respectively, suggesting a higher level of debt usage compared to the previous years. This could be due to strategic decisions to take on more debt to fund expansion or investment activities during those periods.

However, in 2023, the financial leverage ratio decreased to 1.21. This reduction may signify a decrease in the company's reliance on debt financing or a potential increase in equity financing. A lower financial leverage ratio can indicate a lower financial risk for the company, as it has less debt relative to its equity.

Overall, the trend in the financial leverage ratio for Vir Biotechnology Inc shows variability over the years, indicating changes in the company's capital structure and financial strategy. Further analysis of the company's debt levels, profitability, and cash flow might provide additional insights into its financial health and risk profile.