Viatris Inc (VTRS)

Receivables 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
Revenue (ttm)	US$ in thousands	15,426,900	15,465,600	15,601,900	15,800,100	16,262,700	16,728,300	17,186,700	17,647,700	17,886,300	17,168,200	15,603,700	13,757,100	12,518,600
Receivables	US$ in thousands	2,823,800	3,231,000	3,123,700	3,021,900	3,243,800	2,829,800	3,182,900	3,556,900	3,774,400	3,841,500	3,880,400	3,889,600	3,891,300	300	163	—
Receivables turnover		5.46	4.79	4.99	5.23	5.01	5.91	5.40	4.96	4.74	4.47	4.02	3.54	3.22

December 31, 2023 calculation

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

The receivables turnover of Viatris Inc has been relatively stable over the past eight quarters, ranging from 4.14 to 5.02. This ratio measures how efficiently the company is collecting its accounts receivable during a specific period. A higher turnover indicates that Viatris is collecting its receivables more quickly.

The average receivables turnover for the period is 4.53, suggesting that, on average, Viatris collects its outstanding receivables approximately 4.53 times a year. The decreasing trend from Q3 2022 to Q1 2023 followed by a slight increase in Q2 2023 and Q3 2023 may indicate potential improvements in the company's credit policies or collection processes.

However, a further analysis of the trend in conjunction with other relevant financial metrics and industry benchmarks would provide more insight into Viatris Inc's overall performance in managing its accounts receivable efficiently.