Viatris Inc (VTRS)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		2.35	2.19	2.26	2.34	2.58	2.55	2.56	2.56	2.71	2.88	2.77	2.70	2.63	2.48	2.08	1.69	1.35	2.32	2.55	2.73
DOH	days	155.36	166.47	161.17	156.20	141.32	143.35	142.39	142.66	134.57	126.69	131.87	135.33	138.88	147.10	175.28	215.98	270.86	157.39	143.20	133.47

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.35
= 155.36

Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days it takes for a company to sell its entire inventory. For Viatris Inc, the trend in DOH over the past few years shows fluctuations.

From March 31, 2020, to September 30, 2020, the DOH increased from 133.47 days to 157.39 days, indicating that Viatris took longer to sell its inventory during this period. However, there was a significant spike in DOH to 270.86 days by December 31, 2020, suggesting a potential issue with inventory management or sales slowdown.

The company then made improvements as the DOH decreased to 138.88 days by December 31, 2021, and continued to decline to 126.69 days by September 30, 2022, indicating that Viatris was able to sell its inventory more efficiently during this period.

However, from December 31, 2022, to September 30, 2023, the DOH increased again to 143.35 days before decreasing slightly to 141.32 days by December 31, 2023. The trend continued with fluctuations in DOH over the next few quarters.

Overall, maintaining a balance in inventory levels is crucial for Viatris to optimize working capital and ensure efficient operations. The company should focus on monitoring its inventory turnover rate and implementing strategies to align inventory levels with market demand to improve its DOH ratio in the future.