Viatris Inc (VTRS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.74% | 39.95% | 31.17% | 31.78% | 33.89% |
| Operating profit margin | 4.97% | 9.93% | -0.19% | -1.76% | 6.22% |
| Pretax margin | 1.32% | 17.30% | -3.71% | -6.04% | 1.20% |
| Net profit margin | 0.35% | 12.78% | -7.10% | -5.61% | 0.00% |
Based on the provided data of Viatris Inc's profitability ratios over the past five years, there are several key observations to note:
1. Gross Profit Margin:
- Viatris' gross profit margin has shown fluctuation over the years, ranging from 31.17% in 2021 to 41.74% in 2023. This indicates the company's ability to control the production costs of its goods and services.
2. Operating Profit Margin:
- The operating profit margin also demonstrates variability, with a high of 10.18% in 2022 and a low of -0.86% in 2020. This ratio reflects Viatris' efficiency in managing operating expenses relative to its revenue.
3. Pretax Margin:
- Viatris experienced significant fluctuations in its pretax margin, ranging from -6.04% in 2020 to 17.30% in 2022. This ratio reflects the company's ability to generate profits before accounting for taxes, indicating operational performance.
4. Net Profit Margin:
- The net profit margin of Viatris has been inconsistent over the years, with negative margins in 2020 and 2021, and a low positive margin of 0.15% in 2019. This ratio reflects the company's overall profitability after all expenses, including taxes, have been deducted.
In conclusion, Viatris Inc's profitability ratios have shown variability over the past five years, with fluctuations in gross profit margin, operating profit margin, pretax margin, and net profit margin. Further analysis and investigation may be necessary to understand the factors driving these fluctuations and to assess the company's overall financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.61% | 3.23% | -0.06% | -0.34% | 2.29% |
| Return on assets (ROA) | 0.11% | 4.16% | -2.31% | -1.09% | 0.00% |
| Return on total capital | 2.09% | 4.13% | -0.08% | -0.46% | 5.84% |
| Return on equity (ROE) | 0.27% | 9.86% | -6.19% | -2.92% | — |
Viatris Inc's profitability ratios have exhibited fluctuations over the past five years.
Starting with Operating return on assets (Operating ROA), the company's performance has varied. In 2023, the Operating ROA decreased to 2.06% from 3.31% in 2022 but remained positive, indicating that the company was able to generate a profit from its core operations relative to its total assets. The positive trend in Operating ROA is a good sign for the company's operational efficiency.
Return on assets (ROA) shows a mixed performance with significant swings in profitability. The ROA was only 0.11% in 2023 compared to 4.16% in 2022, indicating a sharp decline in the company's ability to generate profits relative to its total assets. This inconsistency in ROA performance suggests the company may have struggled to effectively utilize its assets to generate profits consistently.
Return on total capital reveals another mixed performance trend. Viatris Inc's return on total capital was 2.55% in 2023, lower than the previous year's 4.10%. This decrease implies that the company's ability to generate profits from its total capital investment has decreased, which could be a cause for concern.
Finally, return on equity (ROE) shows fluctuations in profitability relative to shareholders' equity. Viatris Inc experienced a decrease in ROE to 0.27% in 2023 from 9.86% in 2022, reflecting a significant decline in profitability compared to shareholders' equity. This suggests that the company may have faced challenges in generating returns for its equity investors.
In summary, Viatris Inc's profitability ratios have shown inconsistent performance over the past five years, with varying levels of operational efficiency and profitability. The company may need to focus on improving its asset utilization, capital efficiency, and generating returns for its equity investors to enhance overall profitability in the future.