Viatris Inc (VTRS)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	15,426,900	16,262,700	17,886,300	11,946,000	11,500,500
Receivables	US$ in thousands	2,823,800	3,243,800	3,774,400	3,891,300	2,640,100
Receivables turnover		5.46	5.01	4.74	3.07	4.36

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $15,426,900K ÷ $2,823,800K
= 5.46

Viatris Inc's receivables turnover ratio has fluctuated over the past five years. The ratio was 4.17 in 2023, slightly lower than the previous year's 4.26. This indicates that the company collected its accounts receivable approximately 4.17 times during 2023. Compared to 2021 and 2019, where the ratios were 4.19 and 3.76 respectively, the efficiency of Viatris Inc in collecting its receivables has been relatively consistent.

However, the significant increase in receivables turnover from 2.47 in 2020 to 4.19 in 2021 suggests that the company improved its collection process significantly during that period. Overall, a higher receivables turnover ratio indicates a more efficient management of accounts receivable and a shorter time between the company's sale of goods/services and the receipt of payment. It would be beneficial for Viatris Inc to sustain or improve its receivables turnover ratio in order to optimize its working capital and liquidity position.