Viatris Inc (VTRS)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	202,900	2,005,500	2,216,100	2,439,300	2,813,200	1,661,700	1,248,800	473,500	-664,400	-1,058,100	-1,016,400	-777,300	-200,800
Revenue (ttm)	US$ in thousands	15,426,900	15,465,600	15,601,900	15,800,100	16,262,700	16,728,300	17,186,700	17,647,700	17,886,300	17,168,200	15,603,700	13,757,100	12,518,600
Pretax margin		1.32%	12.97%	14.20%	15.44%	17.30%	9.93%	7.27%	2.68%	-3.71%	-6.16%	-6.51%	-5.65%	-1.60%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $202,900K ÷ $15,426,900K
= 1.32%

The pretax margin of Viatris Inc has varied significantly over the past eight quarters. In Q4 2023, the pretax margin dropped to 1.32%, a substantial decrease from the previous quarter's 16.34%. This decline may raise concerns about the company's ability to generate profits before accounting for taxes and other expenses. Comparing to the same period last year, Q4 2022's pretax margin was higher at 17.30%.

Overall, it is crucial for Viatris Inc to closely monitor and potentially address the factors contributing to the decline in pretax margin to ensure sustainable profitability in the future.