Viatris Inc (VTRS)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 3.94 | 3.96 | 3.73 | 2.97 | 3.46 | 3.77 | 4.79 | 4.49 | 4.18 | 4.22 | 4.92 | 8.40 | 17.56 | 14.25 | 9.65 | 5.88 | 5.18 | 194.17 | — | 8.47 |
The inventory turnover ratio of Viatris Inc has shown a declining trend from 2.73 in March 2020 to around 2.35 in December 2024. This indicates that the company is taking slightly longer to sell its inventory over time. However, the ratio has been relatively stable around the range of 2.30 to 2.70 in recent periods.
The receivables turnover ratio is not provided in the data, indicating that the company's credit sales turnover efficiency is unknown.
Similarly, the payables turnover ratio is also unavailable, so the efficiency of Viatris Inc in paying its suppliers within a given period cannot be assessed.
The working capital turnover ratio fluctuates widely, ranging from a high of 194.17 in September 2020 to a low of 2.97 in March 2024. This ratio signifies how effectively the company is utilizing its working capital to generate sales. A higher turnover ratio indicates efficient use of working capital resources. Viatris Inc experienced a peak in working capital turnover in September 2020 but has shown a decreasing trend since then.
In conclusion, while the inventory turnover ratio has been relatively stable, the lack of data for receivables and payables turnover ratios limits a comprehensive assessment of Viatris Inc's efficiency in managing its receivables and payables. The fluctuating trend in working capital turnover points to changing levels of efficiency in utilizing working capital for generating sales over the periods analyzed.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 155.36 | 166.47 | 161.17 | 156.20 | 141.32 | 143.35 | 142.39 | 142.66 | 134.57 | 126.69 | 131.87 | 135.33 | 138.88 | 147.10 | 175.28 | 215.98 | 270.86 | 157.39 | 143.20 | 133.47 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The analysis of Viatris Inc's activity ratios reveals the following:
1. Days of Inventory on Hand (DOH):
- The trend in DOH shows fluctuations over the periods analyzed.
- The company had a high DOH of 270.86 days on December 31, 2020, followed by a significant decrease to 126.69 days on September 30, 2022.
- The DOH has been relatively stable in recent periods, ranging between 126.69 days and 166.47 days.
- A lower DOH indicates the company is efficiently managing its inventory levels, while a higher DOH may suggest overstocking or slower sales.
2. Days of Sales Outstanding (DSO):
- The data shows that DSO values are not available for the periods provided.
- Without DSO figures, it is challenging to assess the efficiency of the company in collecting its receivables from customers.
- Ideally, a lower DSO indicates faster collections, while a higher DSO could suggest potential liquidity issues or ineffective credit policies.
3. Number of Days of Payables:
- Similar to DSO, the information on the number of days of payables is not available for the periods provided.
- Lack of payables data makes it difficult to evaluate how efficiently the company is managing its accounts payable and cash flow.
- A longer period of payables may indicate strong bargaining power with suppliers, while a significantly shorter period could signal potential cash flow challenges.
In summary, while the analysis of DOH provides insights into inventory management, the absence of DSO and payables data limits a comprehensive assessment of Viatris Inc's overall activity ratios and working capital efficiency. More detailed information on these ratios would be necessary for a holistic evaluation of the company's operational effectiveness and financial health.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 4.87 | 5.23 | 5.25 | 4.95 | 5.50 | 5.57 | 5.60 | 5.14 | 5.51 | 4.49 | 3.87 | 3.16 | 5.04 | 5.07 | 5.05 |
| Total asset turnover | 0.35 | 0.34 | 0.34 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.33 | 0.34 | 0.34 | 0.33 | 0.33 | 0.31 | 0.27 | 0.23 | 0.19 | 0.37 | 0.38 | 0.39 |
The Fixed Asset Turnover ratio for Viatris Inc has seen fluctuating trends over the years. It increased steadily from March 2020 to September 2021, indicating efficient utilization of fixed assets to generate sales. However, there was a noticeable dip in December 2021, likely due to changes in asset utilization or sales performance.
From March 2022 to June 2023, the Fixed Asset Turnover ratio remained relatively stable, showing consistent performance in utilizing fixed assets to generate revenue. There was a slight decrease in September 2023, followed by a further decline towards the end of 2023, which may signal a need for improved asset management strategies.
As for the Total Asset Turnover ratio, it also demonstrated a declining trend overall from March 2020 to December 2024. The ratio started at a low point in early 2020 and gradually increased until December 2021, indicating improving efficiency in generating sales relative to total assets.
However, from March 2022 onwards, the Total Asset Turnover ratio remained relatively stable with minor fluctuations, showcasing consistent performance in utilizing total assets to generate revenue. The slight uptick in the ratio towards the end of 2024 may suggest improved efficiency in asset turnover.
In summary, Viatris Inc has shown varied performance in both Fixed Asset Turnover and Total Asset Turnover ratios over the years, with periods of improvement and decline. Continuous monitoring and potential strategic adjustments may be needed to enhance the efficiency of asset utilization in generating sales.