Viatris Inc (VTRS)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	9,054,800	8,955,600	8,927,400	8,933,900	8,961,400	9,349,400	9,334,800	9,375,300	9,545,800	9,739,100	9,998,600	10,241,800	10,454,000	10,128,700	9,345,100	8,352,000	7,373,700	7,008,200	7,100,600	7,218,500
Inventory	US$ in thousands	3,854,100	4,084,600	3,942,100	3,823,200	3,469,700	3,671,900	3,641,500	3,664,300	3,519,500	3,380,400	3,612,500	3,797,300	3,977,700	4,081,900	4,487,600	4,942,200	5,471,900	3,022,000	2,785,700	2,639,600
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $9,054,800K ÷ $3,854,100K
= 2.35

The inventory turnover ratio for Viatris Inc, a measure of how efficiently the company manages its inventory, has shown some fluctuation over the time period provided. Starting at 2.73 as of March 31, 2020, the ratio decreased gradually to its lowest point of 1.35 on December 31, 2020, indicating a potential issue with inventory management during that period. However, the company was able to improve its inventory turnover ratio steadily, reaching 2.88 as of September 30, 2022, showing enhanced efficiency in inventory utilization.

Subsequently, the inventory turnover ratio fluctuated between 2.56 and 2.77 until December 31, 2023. Over the last quarter of 2023 and the first half of 2024, the ratio ranged from 2.34 to 2.35, suggesting a stabilizing trend in inventory management efficiency.

Overall, Viatris Inc's inventory turnover ratio has generally demonstrated a pattern of improvement and stability, indicating the company's ability to effectively manage its inventory levels and meet customer demand efficiently over the analyzed period.