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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| 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 |
| 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 |
| 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 |
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.
Peer comparison
Dec 31, 2023