Viatris Inc (VTRS)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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 14,726,100 15,022,500 15,226,400 15,348,400 15,414,100 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 11,946,000 11,514,300 11,503,900 11,624,200
Total current assets US$ in thousands 9,520,700 11,307,700 11,792,100 12,923,500 12,228,800 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 7,334,700 6,464,600 6,600,500
Total current liabilities US$ in thousands 5,779,400 7,512,400 7,709,200 7,759,900 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 7,275,400 6,971,300 5,228,200
Working capital turnover 3.94 3.96 3.73 2.97 3.46 3.77 4.79 4.49 4.18 4.22 4.92 8.40 17.56 14.25 9.65 5.88 5.18 194.17 — 8.47

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $14,726,100K ÷ ($9,520,700K – $5,779,400K)
= 3.94

The working capital turnover of Viatris Inc has displayed fluctuations over the period from March 2020 to December 2024. Initially, in March 2020, the working capital turnover stood at a relatively high level of 8.47, indicating that the company was efficiently utilizing its working capital to generate revenues. However, in June 2020, the data is unavailable (\u2014), making it difficult to assess the trend during that specific quarter.

Subsequently, there was a significant surge in the working capital turnover to 194.17 in September 2020, suggesting a substantial increase in the company's working capital efficiency. This spike was followed by a notable decline in December 2020 to 5.18, indicating a potential decrease in the effectiveness of working capital management.

The working capital turnover continued to fluctuate between 5.88 and 17.56 from March 2021 to December 2021, possibly reflecting adjustments in the company's operational activities or changes in its investment in working capital. From March 2022 to December 2024, the working capital turnover remained relatively stable, ranging from 2.97 to 3.96, signaling a consistent level of efficiency in utilizing working capital to support revenue generation.

Overall, the working capital turnover data suggests varying levels of efficiency in managing working capital across different periods, with periods of high and low turnover rates indicating changes in the company's ability to convert working capital into sales revenue efficiently.