Viatris Inc (VTRS)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -634,200 | 54,700 | 2,078,600 | -1,269,100 | -669,900 |
| Total assets | US$ in thousands | 41,500,900 | 47,685,500 | 50,022,200 | 54,842,800 | 61,553,000 |
| ROA | -1.53% | 0.11% | 4.16% | -2.31% | -1.09% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-634,200K ÷ $41,500,900K
= -1.53%
Based on the data provided, Viatris Inc's return on assets (ROA) has fluctuated over the past five years.
- As of December 31, 2020, the ROA was -1.09%, indicating that for that year, the company generated a negative return on its assets, implying that its assets were not effectively utilized to generate profits.
- The ROA worsened in the following year, December 31, 2021, to -2.31%, suggesting further inefficiencies in asset utilization and potentially declining profitability.
- However, there was a significant improvement in the company's performance in the fiscal year ending December 31, 2022, with an ROA of 4.16%. This indicates that the company effectively utilized its assets to generate a positive return and potentially experienced increased profitability.
- The ROA decreased in the subsequent year, December 31, 2023, to 0.11%, suggesting a slight decline in the efficiency of asset utilization and a decrease in profitability compared to the previous year.
- The performance further declined as of December 31, 2024, with an ROA of -1.53%, indicating a return to negative territory and potentially signaling challenges in asset management or declining profitability.
Overall, Viatris Inc's ROA has shown variability over the years, with periods of both negative and positive returns. It is essential for the company to focus on optimizing its asset utilization to enhance profitability and overall financial performance in the future.
Peer comparison
Dec 31, 2024