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