Viatris Inc (VTRS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.15% | 41.74% | 39.95% | 31.17% | 31.78% |
| Operating profit margin | 0.07% | 4.97% | 9.93% | -0.19% | -1.76% |
| Pretax margin | -4.23% | 1.32% | 17.30% | -3.71% | -6.04% |
| Net profit margin | -4.30% | 0.35% | 12.78% | -7.10% | -5.61% |
Viatris Inc's profitability ratios show varying performance levels over the years.
- The Gross Profit Margin has fluctuated, starting at 31.78% in 2020, decreasing to 31.17% in 2021, before improving significantly to 39.95% in 2022 and further to 41.74% in 2023, then dropping to 38.15% in 2024. This indicates improvements in managing direct costs but a slight decline in 2024.
- The Operating Profit Margin was negative in 2020 and 2021, showing signs of inefficiency or challenges in controlling operating expenses. However, the margin increased to 9.93% in 2022, indicating better operational efficiency, although it decreased to 0.07% in 2024, suggesting challenges in maintaining profitability from operations.
- The Pretax Margin was negative in 2020 and 2021 but improved significantly to 17.30% in 2022, before dropping to 1.32% in 2023 and turning negative again at -4.23% in 2024. This pattern suggests fluctuations in pre-tax profitability, possibly due to changes in tax expenses or other non-operating factors.
- The Net Profit Margin was negative in 2020 and 2021, with a notable improvement to 12.78% in 2022, followed by a significant decrease to 0.35% in 2023, and turning negative again at -4.30% in 2024. This indicates varying levels of net profitability, potentially impacted by changes in interest expenses, taxes, or other non-operating items.
Overall, Viatris Inc's profitability margins show some positive trends in certain years, but there are also challenges evident in maintaining consistent profitability levels across different metrics, indicating the need for continuous monitoring and strategic adjustments to improve overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.02% | 1.61% | 3.23% | -0.06% | -0.34% |
| Return on assets (ROA) | -1.53% | 0.11% | 4.16% | -2.31% | -1.09% |
| Return on total capital | -0.39% | 3.80% | 16.16% | -0.14% | -0.99% |
| Return on equity (ROE) | -3.40% | 0.27% | 9.86% | -6.19% | -2.92% |
Viatris Inc's profitability ratios indicate fluctuating performance over the years. The Operating Return on Assets (Operating ROA) improved from a negative figure of -0.34% in 2020 to 3.23% in 2022 before declining to 0.02% in 2024. This suggests that the company improved its operational efficiency and generated better returns on its assets in 2022, but faced challenges in maintaining this performance in the subsequent years.
Similarly, the Return on Assets (ROA) saw a significant improvement from -2.31% in 2021 to 4.16% in 2022, indicating better overall asset utilization and profitability. However, the ratio declined to 0.11% in 2023, reflecting a decrease in the company's ability to generate profits from its assets.
Return on Total Capital exhibited a similar trend, with a sharp increase to 16.16% in 2022 from a negative ratio in 2020 and 2021. This indicates that Viatris Inc effectively utilized its total capital to generate higher returns in 2022. However, the ratio declined to 3.80% in 2023, suggesting a decrease in the company's efficiency in using its total capital to generate profits.
Return on Equity (ROE) also showed fluctuations, with the highest return of 9.86% in 2022. The negative ROE in 2020 and 2021 improved significantly in 2022, but declined to 0.27% in 2023 and further to -3.40% in 2024, signaling volatility in the company's ability to generate returns for its equity shareholders.
Overall, the profitability ratios of Viatris Inc demonstrate a mixed performance, with improvements in some years but challenges in sustaining profitability levels in others. This highlights the importance of continuous monitoring and strategic management of the company's assets, capital, and equity to enhance overall profitability and shareholder value.