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 Sep 30, 2020 Jun 30, 2020 Mar 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 -201,000 -1,000 0
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.


Peer comparison

Dec 31, 2023