Viatris Inc (VTRS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 41.74% | 39.55% | 39.57% | 39.67% | 39.95% | 40.47% | 38.37% | 35.24% | 31.17% | 27.58% | 27.69% | 29.21% | 31.78% |
| Operating profit margin | 4.97% | 6.59% | 7.23% | 8.27% | 9.93% | 10.39% | 8.94% | 5.32% | -0.19% | -4.88% | -5.41% | -4.81% | -0.98% |
| 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% |
| Net profit margin | 0.35% | 8.47% | 9.73% | 10.98% | 12.78% | 7.92% | 6.38% | 1.91% | -7.10% | -8.77% | -12.73% | -12.41% | -5.35% |
Viatris Inc's profitability ratios display a mixed performance trend over the past eight quarters. The gross profit margin has been relatively stable, hovering between 35.24% and 41.74% with a slight improvement in the most recent quarter. This indicates the efficiency of the company in generating profits from its core operations.
In contrast, the operating profit margin has shown a declining trend, dropping from 12.05% in Q3 2022 to 6.37% in Q4 2023. This suggests that Viatris Inc may be facing challenges in managing its operating expenses and maintaining profitability at the operating level.
The pretax margin has displayed fluctuations over the periods, with a significant increase in Q3 2023 followed by a sharp decline in Q4 2023. This indicates varying levels of profitability before accounting for taxes, potentially influenced by factors such as operational efficiency and non-operating income or expenses.
Similarly, the net profit margin has shown variability, with peaks and troughs across the quarters. While there was a notable increase in Q2 and Q3 2023, the margin dropped to 0.35% in Q4 2023, reflecting the company's ability to convert revenues into profits after accounting for all expenses, including taxes.
Overall, Viatris Inc's profitability ratios suggest a need for careful monitoring and potentially strategic adjustments to enhance operational efficiency and sustain profitability levels in the future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.61% | 2.09% | 2.32% | 2.65% | 3.23% | 3.57% | 3.00% | 1.76% | -0.06% | -1.49% | -1.46% | -1.12% | -0.20% |
| Return on assets (ROA) | 0.11% | 2.69% | 3.12% | 3.52% | 4.16% | 2.72% | 2.15% | 0.63% | -2.31% | -2.68% | -3.42% | -2.89% | -1.09% |
| Return on total capital | 2.09% | 2.69% | 2.96% | 3.35% | 4.13% | 4.59% | 3.94% | 2.40% | -0.08% | -2.04% | -1.96% | -2.39% | -2.32% |
| Return on equity (ROE) | 0.27% | 6.28% | 7.28% | 8.29% | 9.86% | 6.91% | 5.54% | 1.65% | -6.19% | -7.12% | -9.36% | -7.97% | -2.92% |
Viatris Inc's profitability ratios show a mixed performance over the last eight quarters.
- Operating return on assets (Operating ROA) has been relatively stable, ranging from 2.06% to 4.14% with a decreasing trend over the period. This ratio indicates the company's ability to generate operating income from its assets.
- Return on assets (ROA) has varied significantly, with a low of 0.11% in Q4 2023 and a high of 4.16% in Q4 2022. This ratio reflects the overall profitability of the company in relation to its total assets.
- Return on total capital has also shown fluctuations, ranging from 2.55% to 5.15%. This ratio measures the effectiveness of the company's use of all its capital resources to generate profits.
- Return on equity (ROE) has been volatile, with a low of 0.27% and a high of 9.86%. ROE is a key profitability metric for shareholders, indicating the return generated on their invested equity.
Overall, while Viatris Inc's profitability ratios have shown variability, it is important to assess the company's performance in conjunction with other financial metrics and external factors to gain a comprehensive understanding of its profitability dynamics.