Viatris Inc (VTRS)

Working capital 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
Total current assets	US$ in thousands	12,976,100	10,932,000	9,778,000	9,630,300	10,635,400	10,487,800	11,176,500	11,744,300	10,902,900	11,308,400	11,749,800	12,318,500	12,867,500	11,413,000	11,411,800	0
Total current liabilities	US$ in thousands	7,777,400	6,834,000	6,523,800	6,108,100	6,746,200	6,521,400	7,681,200	9,642,900	9,884,400	10,103,900	10,132,600	9,978,100	10,562,900	79,000	27,800	0
Working capital turnover		2.97	3.77	4.79	4.49	4.18	4.22	4.92	8.40	17.56	14.25	9.65	5.88	5.43

December 31, 2023 calculation

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

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenues. A higher ratio indicates more efficient utilization of working capital.

Based on the data provided, Viatris Inc's working capital turnover has fluctuated over the past eight quarters. In Q1 2022, the ratio was at its highest point of 8.40, indicating that for each dollar of working capital, the company generated $8.40 in revenue during that period. This high turnover suggests strong operational efficiency and effective management of working capital.

However, in subsequent quarters, the working capital turnover ratio declined, reaching its lowest point of 2.97 in Q4 2023. This decrease suggests a potential decrease in efficiency in utilizing working capital to generate revenue.

It is important to further investigate the reasons behind the fluctuation in the working capital turnover ratio to understand the underlying factors impacting the company's efficiency in managing its working capital effectively.