Viatris Inc (VTRS)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 10,100 719,400 945,200 1,554,300 1,750,200 1,994,500 2,102,900 2,282,400 2,590,000 1,738,600 1,536,100 939,600 -34,000 -837,500 -843,700 -661,700 -210,800 951,500 923,800 885,100
Total assets US$ in thousands 41,500,900 44,754,100 45,330,000 47,343,700 47,685,500 48,742,600 48,695,200 49,290,200 50,022,200 48,662,600 51,125,100 53,466,900 54,842,800 56,070,400 57,984,100 58,979,200 61,553,000 31,243,100 30,155,400 30,145,900
Operating ROA 0.02% 1.61% 2.09% 3.28% 3.67% 4.09% 4.32% 4.63% 5.18% 3.57% 3.00% 1.76% -0.06% -1.49% -1.46% -1.12% -0.34% 3.05% 3.06% 2.94%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $10,100K ÷ $41,500,900K
= 0.02%

The operating return on assets (ROA) for Viatris Inc has shown fluctuations over the reporting periods from March 31, 2020, to December 31, 2024. The ROA started at 2.94% in March 2020, increased to around 3% by June 2020, and then decreased to -0.34% by December 2020, reflecting a decline in operating efficiency and asset utilization.

Subsequently, the operating ROA continued to trend negatively, reaching its lowest point at -1.49% by September 2021. However, starting from March 2022, there was a gradual improvement in the operating ROA, with a notable increase to 5.18% by December 2022, indicating enhanced operational performance and better asset management.

The positive trend continued through 2023, with the operating ROA staying relatively stable between 3.67% to 4.63%. Finally, by December 31, 2024, the operating ROA declined to 0.02%, signaling a slight decrease in operating efficiency compared to the preceding periods.

Overall, Viatris Inc's operating ROA has experienced fluctuations but has shown signs of recovery and improvement in operational performance over the analyzed period. This metric is crucial for investors and analysts to assess the company's ability to generate profits from its operational activities relative to its asset base.