Viatris Inc (VTRS)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	8,988,300	9,349,400	9,428,600	9,532,100	9,765,700	9,959,000	10,591,700	11,428,300	12,310,800	12,432,700	11,283,800	9,739,200	8,540,600
Inventory	US$ in thousands	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	2,670,900
Inventory turnover		2.59	2.55	2.59	2.60	2.77	2.95	2.93	3.01	3.09	3.05	2.51	1.97	1.56

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,988,300K ÷ $3,469,700K
= 2.59

The inventory turnover ratio for Viatris Inc has been relatively stable over the past eight quarters, ranging from 2.55 to 3.01. The trend indicates that the company is effectively managing its inventory with an average turnover rate of around 2.76.

A higher inventory turnover ratio suggests that the company is selling its inventory more quickly, which can be indicative of effective inventory management, efficient production processes, and strong sales. Viatris Inc's ratios over the periods suggest that the company maintains a good balance between stocking enough inventory to meet demand without having excess or obsolete stock.

Although the fluctuations in the quarterly figures are minimal, attention should be paid to the slight decrease in inventory turnover from Q4 2022 to Q1 2023. Management may want to investigate the reasons behind this dip and take appropriate actions to ensure inventory turnover remains at an optimal level.

Overall, Viatris Inc's inventory turnover ratios indicate a healthy inventory management process, suggesting effective control over inventory levels and efficient sales operations.