Viatris Inc (VTRS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 734,800 | 991,900 | 1,259,900 | 701,200 | 844,400 |
| Short-term investments | US$ in thousands | 355,100 | 192,500 | 212,600 | 233,800 | 203,500 |
| Total current liabilities | US$ in thousands | 5,779,400 | 7,777,400 | 6,746,200 | 9,884,400 | 10,562,900 |
| Cash ratio | 0.19 | 0.15 | 0.22 | 0.09 | 0.10 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($734,800K
+ $355,100K)
÷ $5,779,400K
= 0.19
The cash ratio of Viatris Inc has shown some fluctuations over the past five years. As of December 31, 2020, the cash ratio was 0.10, indicating that the company had $0.10 in cash for every $1 of current liabilities. This ratio decreased slightly to 0.09 by December 31, 2021, reflecting a potential liquidity challenge.
However, there was a significant improvement in liquidity by December 31, 2022, with the cash ratio increasing to 0.22. This indicates that the company had strengthened its cash position relative to its short-term obligations. The ratio then decreased to 0.15 by December 31, 2023, suggesting a slight decrease in liquidity.
By December 31, 2024, the cash ratio had increased again to 0.19, although it was still below the level observed in 2022. Overall, the trend in Viatris Inc's cash ratio indicates some variability in the company's ability to cover its short-term liabilities with available cash. It would be essential for the company to carefully manage its cash position to ensure adequate liquidity to meet its financial obligations effectively.
Peer comparison
Dec 31, 2024