Viatris Inc (VTRS)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 54,700 | 2,078,600 | -1,269,100 | -669,900 | 0 |
| Total stockholders’ equity | US$ in thousands | 20,467,400 | 21,072,300 | 20,492,700 | 22,954,100 | 0 |
| ROE | 0.27% | 9.86% | -6.19% | -2.92% | — |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $54,700K ÷ $20,467,400K
= 0.27%
Viatris Inc's Return on Equity (ROE) has fluctuated significantly over the past five years. In 2023, the ROE was a mere 0.27%, indicating that for every dollar of shareholder equity, the company generated a return of 0.27 cents. This represents a substantial decline from the previous year, where the ROE stood at 9.86%.
The negative ROE figures in 2021 (-6.19%) and 2020 (-2.92%) suggest that the company's net income was insufficient to cover its shareholders' equity during those periods. However, there was a slight improvement in 2019, with an ROE of 0.14%.
The drastic fluctuations in Viatris Inc's ROE indicate inconsistent profitability and efficiency in utilizing shareholders' equity to generate earnings. Further analysis is needed to understand the factors influencing these changes and to determine the company's long-term sustainability and profitability.
Peer comparison
Dec 31, 2023