Viatris Inc (VTRS)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 202,900 | 2,813,200 | -664,400 | -721,200 | 137,600 |
| Revenue | US$ in thousands | 15,426,900 | 16,262,700 | 17,886,300 | 11,946,000 | 11,500,500 |
| Pretax margin | 1.32% | 17.30% | -3.71% | -6.04% | 1.20% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $202,900K ÷ $15,426,900K
= 1.32%
The pretax margin of Viatris Inc has shown significant fluctuations over the past five years. In 2023, the pretax margin declined sharply to 1.32% from 17.30% in 2022, indicating a substantial decrease in profitability before accounting for taxes. This significant drop may suggest challenges in controlling costs or generating revenue during the most recent fiscal year.
The negative pretax margins in 2021 (-3.71%) and 2020 (-6.04%) indicate that the company incurred losses before tax during these periods. These years may have been particularly challenging for Viatris Inc, potentially due to operational inefficiencies, economic downturns, or other adverse factors affecting its financial performance.
In contrast, the positive pretax margin of 1.34% in 2019 suggests that the company was able to generate a small profit before tax that year. However, the margin was relatively low, indicating a narrow gap between revenue and expenses.
Overall, the fluctuating pretax margins of Viatris Inc highlight the company's varying levels of profitability and financial performance over the analyzed period. Analyzing the factors contributing to these fluctuations will be crucial for assessing the company's operational efficiency and sustainability in the future.
Peer comparison
Dec 31, 2023