Viatris Inc (VTRS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,115,700 | 8,988,300 | 9,765,700 | 12,310,800 | 8,149,300 |
| Inventory | US$ in thousands | 3,854,100 | 3,469,700 | 3,519,500 | 3,977,700 | 5,471,900 |
| Inventory turnover | 2.37 | 2.59 | 2.77 | 3.09 | 1.49 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $9,115,700K ÷ $3,854,100K
= 2.37
Viatris Inc's inventory turnover has shown an upward trend over the past five years, indicating an improvement in the company's efficiency in managing its inventory. The inventory turnover ratio increased from 1.49 in December 31, 2020, to 3.09 in December 31, 2021, showing a significant improvement in how quickly the company is selling its inventory.
However, there was a slight decrease in the inventory turnover ratio in the following years, with ratios of 2.77 in December 31, 2022, 2.59 in December 31, 2023, and 2.37 in December 31, 2024. Despite the declines in the latter years, the inventory turnover ratios remain relatively healthy, indicating that Viatris Inc is still efficient in managing its inventory turnover compared to the base year.
Overall, Viatris Inc's inventory turnover performance suggests that the company has been successful in optimizing its inventory management processes to enhance operational efficiency and generate better cash flow through the more rapid turnover of its goods.
Peer comparison
Dec 31, 2024