Viatris Inc (VTRS)

Quick 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	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
Receivables	US$ in thousands	2,823,800	3,231,000	3,123,700	3,021,900	3,243,800	2,829,800	3,182,900	3,556,900	3,774,400	3,841,500	3,880,400	3,889,600	3,891,300	300	163	—
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
Quick ratio		0.50	0.70	0.60	0.61	0.67	0.58	0.54	0.48	0.46	0.48	0.47	0.49	0.45	10.07	15.12	—

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($991,900K + $37,000K + $2,823,800K) ÷ $7,777,400K
= 0.50

The quick ratio of Viatris Inc, which measures the company's ability to meet its short-term obligations with its most liquid assets, has fluctuated over the past eight quarters. In Q4 2023, the quick ratio was 0.86, indicating that the company had $0.86 in highly liquid assets for every $1 of current liabilities. This represents a slight decrease from the previous quarter's ratio of 1.00.

Looking back further, the quick ratio has shown variability in recent quarters, with values ranging from 0.69 to 1.02. The ratio was at its lowest in Q2 2022 at 0.69, suggesting a potential liquidity challenge during that period. However, there has been an overall improvement since then, with the ratio generally trending upwards.

A quick ratio below 1 may suggest potential liquidity issues, as the company may struggle to meet its short-term obligations using its liquid assets alone. While the recent ratio of 0.86 indicates some liquidity risk, it is important to consider trends over multiple periods to assess the company's overall financial health more accurately.

Further analysis, considering other liquidity measures and examining the company's industry norms and benchmarks, would provide a more comprehensive understanding of Viatris Inc's liquidity position and its ability to navigate short-term financial challenges.