Viatris Inc (VTRS)
Total asset 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 |
| Total assets | US$ in thousands | 47,685,500 | 50,022,200 | 54,842,800 | 61,553,000 | 31,255,500 |
| Total asset turnover | 0.32 | 0.33 | 0.33 | 0.19 | 0.37 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $15,426,900K ÷ $47,685,500K
= 0.32
The total asset turnover ratio for Viatris Inc has shown fluctuations over the past five years. In 2023, the total asset turnover was 0.32, a decrease from the previous year's 0.33. This decline indicates that Viatris generated $0.32 in sales for every $1 of assets in 2023. Comparing this to the peak of 0.37 in 2019, it is evident that the company's efficiency in utilizing its assets to generate revenue has declined. A lower total asset turnover ratio could imply inefficiencies in managing inventory, collecting receivables, or utilizing assets effectively to drive sales. Further analysis of the company's operational performance and asset utilization strategies would be crucial in understanding the reasons behind these fluctuations and identifying potential areas for improvement.
Peer comparison
Dec 31, 2023