Viatris Inc (VTRS)

Working capital 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 current assets	US$ in thousands	12,976,100	10,635,400	10,902,900	12,867,500	6,757,300
Total current liabilities	US$ in thousands	7,777,400	6,746,200	9,884,400	10,562,900	5,569,100
Working capital turnover		2.97	4.18	17.56	5.18	9.68

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,426,900K ÷ ($12,976,100K – $7,777,400K)
= 2.97

Viatris Inc's working capital turnover ratio has exhibited varying levels over the past five years. The ratio decreased from 9.68 in 2019 to 5.18 in 2020 before experiencing a significant surge to 17.56 in 2021. This sharp increase suggests that the company was able to efficiently utilize its working capital to generate sales in 2021. However, in the subsequent years, the ratio decreased to 4.18 in 2022 and further to 2.97 in 2023, indicating a potential slowdown in the turnover of working capital compared to previous years. This trend warrants a closer examination of the company's management of working capital to ensure optimal efficiency in its operations going forward.