Viatris Inc (VTRS)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	18,635,500	20,467,400	21,072,300	20,492,700	22,954,100
ROE		-3.40%	0.27%	9.86%	-6.19%	-2.92%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-634,200K ÷ $18,635,500K
= -3.40%

Based on the provided data, Viatris Inc's return on equity (ROE) has experienced fluctuations over the past five years. As of December 31, 2020, the ROE was at -2.92%, indicating that the company generated a negative return for its shareholders.

Subsequently, by December 31, 2021, the ROE decreased further to -6.19%, reflecting a worsening performance in terms of generating profits relative to shareholders' equity.

However, there was a significant improvement in the company's ROE by December 31, 2022, where it stood at 9.86%. This suggests that Viatris Inc was able to generate a positive return on equity, indicating efficiency in utilizing shareholders' funds to generate profits.

By December 31, 2023, the ROE decreased to 0.27%, signaling a slight decline in the company's ability to generate returns for shareholders compared to the previous year.

Finally, as of December 31, 2024, the ROE decreased again to -3.40%, indicating a negative return for shareholders, albeit slightly better than the previous year.

In summary, Viatris Inc's ROE has been volatile over the past five years, with periods of negative returns interspersed with positive returns in certain years. It is important for the company to focus on managing its assets and equity effectively to ensure consistent profitability and value creation for its shareholders in the future.