Viatris Inc (VTRS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	991,900	1,309,600	629,200	506,600	1,259,900	646,700	664,700	752,400	701,200	756,600	673,900	806,900	844,400	664,500	323,600	475,600
Short-term investments	US$ in thousands	37,000	254,900	176,800	173,500	35,300	331,100	278,300	287,400	38,200	234,200	178,400	189,000	39,100	131,100	96,700	109,100
Total current liabilities	US$ in thousands	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	79,000	27,800	0
Cash ratio		0.13	0.23	0.12	0.11	0.19	0.15	0.12	0.11	0.07	0.10	0.08	0.10	0.08	10.07	15.12	—

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 shown fluctuations over the past eight quarters, ranging from 0.26 to 0.46. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a better ability to cover short-term obligations.

In the most recent quarter, Q4 2023, the cash ratio was 0.39, indicating that Viatris Inc had $0.39 in cash and cash equivalents for every $1 of short-term liabilities. This suggests a moderate ability to meet short-term obligations with cash on hand.

The trend over the quarters shows some variability, with the ratio reaching its peak at 0.46 in Q4 2022 and its lowest point at 0.26 in Q1 2022. The fluctuations in the cash ratio may be due to changes in cash reserves, short-term liabilities, or operational efficiency in managing cash flows.

Overall, Viatris Inc's cash ratio indicates a generally satisfactory liquidity position, but it is important to monitor any significant deviations from historical levels to ensure the company's ability to meet its short-term obligations.