Viatris Inc (VTRS)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -623,200 | 202,900 | 2,813,200 | -664,400 | -721,200 |
| Revenue | US$ in thousands | 14,739,300 | 15,426,900 | 16,262,700 | 17,886,300 | 11,946,000 |
| Pretax margin | -4.23% | 1.32% | 17.30% | -3.71% | -6.04% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-623,200K ÷ $14,739,300K
= -4.23%
Based on the data provided for Viatris Inc's pretax margin over the years, there has been significant fluctuation in the company's profitability before taxes.
In December 2020, the pretax margin was at a concerning -6.04%, indicating that the company was experiencing a loss before considering taxes. This negative margin improved slightly by December 2021 to -3.71%, but Viatris Inc was still not operating at a profitable level.
A notable turnaround occurred by December 2022, with the pretax margin surging to a healthy 17.30%. This substantial increase suggests that the company implemented strategic measures to enhance its operational efficiency and profitability.
However, in the following years, there was a decline in the pretax margin. By December 2023, the margin dropped to 1.32%, indicating a decrease in profitability compared to the previous year. This trend continued as the pretax margin fell to -4.23% by December 2024, returning the company to a loss-making position.
The fluctuating pretax margins highlight the financial performance challenges faced by Viatris Inc over the analyzed period. It is recommended that the company focuses on sustaining and improving profitability levels to ensure long-term financial health and stability.
Peer comparison
Dec 31, 2024