Viatris Inc (VTRS)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	54,700	1,310,200	1,518,200	1,735,000	2,078,600	1,324,900	1,096,800	336,800	-1,269,100	-1,505,200	-1,985,700	-1,707,400	-669,800
Total stockholders’ equity	US$ in thousands	20,467,400	20,865,600	20,843,300	20,927,900	21,072,300	19,182,300	19,805,400	20,447,700	20,492,700	21,141,300	21,206,900	21,414,700	22,954,100
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $54,700K ÷ $20,467,400K
= 0.27%

To analyze Viatris Inc's return on equity (ROE) based on the provided data, we observe fluctuations in ROE over the past eight quarters.

In Q4 2023, the ROE decreased significantly to 0.27%, indicating a sharp decline in the company's ability to generate profits relative to its shareholder equity. This substantial drop from the previous quarter's 8.78% raises concerns about the company's efficiency in utilizing equity to generate returns for its shareholders.

The ROE in Q3 2023 stood at 8.78%, showing a healthy return on equity compared to previous quarters. However, this metric dipped slightly in Q2 2023 to 8.90% and further decreased to 9.10% in Q1 2023, demonstrating a trend of diminishing returns on equity over these periods.

Looking back to Q4 2022, Viatris Inc reported an ROE of 9.86%, suggesting a relatively strong performance, while previous quarters saw fluctuating ROE values ranging from 3.84% in Q3 2022 to 0.82% in Q1 2022.

Overall, the ROE trend for Viatris Inc appears to be inconsistent, with fluctuations observed in most quarters. The recent decline in Q4 2023 raises concerns about the company's ability to effectively utilize shareholder equity to generate profits, indicating a need for further investigation into the company's operational performance and efficiency in capital utilization.