Viatris Inc (VTRS)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 15,426,900 | 15,465,600 | 15,601,900 | 15,800,100 | 16,262,700 | 16,728,300 | 17,186,700 | 17,647,700 | 17,886,300 | 17,168,200 | 15,603,700 | 13,757,100 | 12,518,600 |
| Property, plant and equipment | US$ in thousands | 2,759,600 | 2,926,600 | 2,983,200 | 3,007,800 | 3,024,500 | 3,039,000 | 3,083,900 | 3,150,200 | 3,188,600 | 3,114,000 | 3,171,400 | 3,246,900 | 3,459,900 |
| Fixed asset turnover | 5.59 | 5.28 | 5.23 | 5.25 | 5.38 | 5.50 | 5.57 | 5.60 | 5.61 | 5.51 | 4.92 | 4.24 | 3.62 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,426,900K ÷ $2,759,600K
= 5.59
The fixed asset turnover ratio measures how effectively a company is utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio indicates that the company is generating more sales relative to its investment in fixed assets.
Analyzing the fixed asset turnover ratio of Viatris Inc over the past eight quarters shows a consistent trend of above 5, indicating a strong efficiency in utilizing its fixed assets to generate sales. Despite some minor fluctuations, the ratios have remained relatively stable around the 5.3-5.6 range.
This implies that Viatris Inc has been effectively managing and utilizing its fixed assets to generate revenue. The company is deriving a high level of sales relative to its investment in fixed assets, showcasing operational efficiency and effective asset utilization.
Overall, the steady and relatively high fixed asset turnover ratio of Viatris Inc suggests that the company is efficiently utilizing its fixed assets to drive sales and generate revenue over the quarters examined.
Peer comparison
Dec 31, 2023