Viatris Inc (VTRS)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,739,300 | 15,426,900 | 16,262,700 | 17,886,300 | 11,946,000 |
| Total current assets | US$ in thousands | 9,520,700 | 12,976,100 | 10,635,400 | 10,902,900 | 12,867,500 |
| Total current liabilities | US$ in thousands | 5,779,400 | 7,777,400 | 6,746,200 | 9,884,400 | 10,562,900 |
| Working capital turnover | 3.94 | 2.97 | 4.18 | 17.56 | 5.18 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $14,739,300K ÷ ($9,520,700K – $5,779,400K)
= 3.94
The working capital turnover ratio of Viatris Inc has shown significant fluctuations over the past five years. In December 2020, the ratio stood at 5.18, indicating that the company generated $5.18 in revenue for each dollar of working capital invested.
This ratio experienced a substantial increase to 17.56 by December 2021, suggesting a more efficient utilization of working capital to generate revenue. However, the ratio dropped sharply to 4.18 by December 2022, indicating a decrease in the efficiency of working capital management.
In December 2023, the working capital turnover ratio further decreased to 2.97, continuing the trend of lower efficiency in utilizing working capital. Nonetheless, there was a slight improvement as the ratio climbed to 3.94 by December 2024.
Overall, the working capital turnover ratio of Viatris Inc has displayed volatility over the period, with fluctuations indicating changes in the company's ability to generate revenue relative to its working capital investment. Further analysis of the underlying factors influencing these fluctuations may provide insights into the company's financial efficiency and operational performance.
Peer comparison
Dec 31, 2024