Vir Biotechnology Inc (VIR)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019
Total assets	US$ in thousands	1,919,060	2,044,900	2,243,870	2,665,940	2,802,090	2,695,970	2,618,990	2,887,130	1,954,270	1,210,210	1,057,580	1,135,580	918,761	943,259	672,238	477,114	512,071	422,642
Total stockholders’ equity	US$ in thousands	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	423,942	-280,797
Financial leverage ratio		1.21	1.22	1.24	1.35	1.35	1.25	1.34	1.44	1.36	1.38	1.43	1.74	1.28	1.16	1.19	1.25	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 fluctuation over the past eight quarters. The ratio measures the proportion of the company's total assets that are financed by debt as opposed to equity.

From the data provided, we can see that the financial leverage ratio ranged from 1.21 to 1.44 during the period. A ratio of 1 indicates that the company is financing its assets equally through debt and equity.

The ratios of 1.21 to 1.24 in the most recent quarters (Q4 2023 to Q2 2023) suggest a relatively conservative approach to financing, with a slightly higher portion of assets financed through equity compared to debt. This may indicate a lower financial risk, as the company is less reliant on debt to support its operations.

However, the ratio increased to 1.35 in Q1 2023, which could suggest a shift towards more debt financing or a decrease in assets relative to debt. This increase in leverage may indicate higher financial risk for the company, as it becomes more dependent on debt for funding its operations.

Overall, the trend in the financial leverage ratio of Vir Biotechnology Inc over the past eight quarters indicates fluctuations in the balance between debt and equity financing. It is important for the company to closely monitor and manage its leverage ratio to ensure a healthy capital structure and minimize financial risk.