Viatris Inc (VTRS)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	15,426,900	16,262,700	17,886,300	11,946,000	11,500,500
Property, plant and equipment	US$ in thousands	2,759,600	3,024,500	3,188,600	3,459,900	2,149,600
Fixed asset turnover		5.59	5.38	5.61	3.45	5.35

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,426,900K ÷ $2,759,600K
= 5.59

The fixed asset turnover ratio for Viatris Inc has exhibited fluctuations over the past five years. The ratio peaked at 5.61 in 2021, indicating that the company generated $5.61 in revenue for every dollar invested in fixed assets. In 2023, the ratio decreased slightly to 5.59, suggesting that the efficiency of utilizing fixed assets to generate sales remained relatively high.

However, it is important to note that in 2020, the fixed asset turnover ratio was notably lower at 3.45, indicating that the company generated less revenue per dollar of investment in fixed assets compared to the other years. This could have been attributed to various factors such as underutilization of assets or lower sales during that period.

Overall, the trend in Viatris Inc's fixed asset turnover ratio reflects varying levels of efficiency in utilizing fixed assets to generate revenue over the past five years, with fluctuations that may warrant further investigation into the company's operational performance and asset management strategies.