Viatris Inc (VTRS)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 155.36 | 166.47 | 161.17 | 156.20 | 141.32 | 143.35 | 142.39 | 142.66 | 134.57 | 126.69 | 131.87 | 135.33 | 138.88 | 147.10 | 175.28 | 215.98 | 270.86 | 157.39 | 143.20 | 133.47 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 155.36 | 166.47 | 161.17 | 156.20 | 141.32 | 143.35 | 142.39 | 142.66 | 134.57 | 126.69 | 131.87 | 135.33 | 138.88 | 147.10 | 175.28 | 215.98 | 270.86 | 157.39 | 143.20 | 133.47 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 155.36 + — – —
= 155.36
The cash conversion cycle of Viatris Inc shows the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales. Analyzing the data provided, we can observe fluctuations in the cash conversion cycle over time.
From March 31, 2020, to December 31, 2020, there was a significant increase in the cash conversion cycle, reaching its peak at 270.86 days. This may indicate that Viatris was taking longer to convert its investments into cash during this period.
However, starting from March 31, 2021, the cash conversion cycle began to decline gradually. By June 30, 2022, the cycle was reduced to 131.87 days, indicating improvements in efficiency in managing inventory and collecting receivables.
From June 30, 2022, to September 30, 2024, the cash conversion cycle fluctuated slightly, ranging between 126.69 days and 166.47 days. This variability suggests potential challenges or changes in the company's operations impacting cash conversion efficiency.
Overall, monitoring the cash conversion cycle is crucial for assessing Viatris' operational efficiency and liquidity management. A shorter cycle indicates that the company is able to generate cash more quickly from its operations, while a longer cycle may signal inefficiencies that need to be addressed.
Peer comparison
Dec 31, 2024