Viatris Inc (VTRS)

Liquidity ratios

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
Current ratio 1.65 1.51 1.53 1.67 1.57 1.60 1.50 1.58 1.58 1.61 1.46 1.22 1.10 1.12 1.16 1.23 1.22 1.01 0.93 1.26
Quick ratio 0.19 0.27 0.13 0.15 0.14 0.23 0.12 0.11 0.22 0.11 0.10 0.09 0.09 0.08 0.08 0.09 0.09 0.10 0.06 0.12
Cash ratio 0.19 0.27 0.13 0.15 0.14 0.23 0.12 0.11 0.22 0.11 0.10 0.09 0.09 0.08 0.08 0.09 0.09 0.10 0.06 0.12

Based on the provided data, the liquidity ratios of Viatris Inc depict the following trends:

1. Current Ratio: Viatris Inc's current ratio has exhibited some fluctuations over the years, ranging from a low of 0.93 in June 2020 to a high of 1.67 in March 2024. Overall, the current ratio has shown a general upward trend, indicating an improvement in the company's ability to meet its short-term obligations with its current assets.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, measures the company's ability to cover its short-term liabilities with its most liquid assets excluding inventory. Viatris Inc's quick ratio has also experienced fluctuations but generally remains low, indicating a potential weakness in the company's ability to meet immediate obligations without relying on selling inventory.

3. Cash Ratio: The cash ratio, a more stringent liquidity measure, focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents. Viatris Inc's cash ratio follows a similar trend to the quick ratio, reflecting the company's limited ability to cover short-term obligations with its cash resources alone.

In summary, while Viatris Inc's current ratio has shown improvement over time, suggesting enhanced short-term liquidity, the quick ratio and cash ratio indicate a potential vulnerability in the company's ability to quickly meet immediate financial obligations. Further monitoring and management of liquidity position may be warranted to ensure financial stability and mitigate liquidity risks.


Additional liquidity measure

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
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

The cash conversion cycle of Viatris Inc has shown fluctuations over the periods analyzed. The cycle represents the time taken by the company to convert its investments into cash flows from sales. A shorter cash conversion cycle is generally favorable as it indicates efficient management of working capital.

From March 31, 2020, to June 30, 2022, the cash conversion cycle of Viatris Inc was relatively stable, ranging from 131.87 days to 175.28 days. This suggests the company was able to efficiently manage its inventory, receivables, and payables during this period.

However, there was a significant increase in the cash conversion cycle from December 31, 2020, to March 31, 2021, reaching 270.86 days, indicating potential difficulties in managing working capital efficiently during that period.

From September 30, 2021, to December 31, 2024, the cash conversion cycle improved gradually, ranging from 126.69 days to 166.47 days. This indicates that Viatris Inc made efforts to streamline its operations and improve its working capital management during this period.

Overall, monitoring the cash conversion cycle can provide insights into the efficiency of Viatris Inc's operations and its ability to generate cash flows from its core business activities. Investors and stakeholders may consider this metric alongside other financial ratios to evaluate the company's performance and financial health.