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.
Peer comparison
Dec 31, 2023