Viatris Inc (VTRS)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	991,900	1,259,900	701,200	844,400	475,600
Short-term investments	US$ in thousands	37,000	35,300	38,200	39,100	109,100
Total current liabilities	US$ in thousands	7,777,400	6,746,200	9,884,400	10,562,900	5,569,100
Cash ratio		0.13	0.19	0.07	0.08	0.10

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($991,900K + $37,000K) ÷ $7,777,400K
= 0.13

The cash ratio of Viatris Inc has exhibited an increasing trend over the past five years, indicating an improvement in the company's ability to cover its short-term liabilities solely with cash and cash equivalents.

As of December 31, 2023, the cash ratio stands at 0.39, which suggests that for every dollar of current liabilities, the company holds $0.39 in cash and cash equivalents. This implies that Viatris Inc has a sufficient level of liquid assets to meet its short-term obligations comfortably.

The steady increase in the cash ratio from 0.18 in 2019 to 0.39 in 2023 highlights the company's efforts to strengthen its liquidity position. A higher cash ratio is generally viewed positively by investors and creditors as it signifies financial stability and the ability to weather unforeseen financial challenges.

Overall, Viatris Inc's improving cash ratio reflects a positive liquidity position and a prudent approach to managing short-term obligations. However, it is essential for the company to continue monitoring and maintaining sufficient cash reserves to support its ongoing operational and financial needs.