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	Sep 30, 2020	Jun 30, 2020	Mar 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	2,286,200	2,267,700	2,303,400
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.