Viatris Inc (VTRS)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	766,200	1,614,900	-34,000	-210,800	654,900
Long-term debt	US$ in thousands	16,188,100	18,015,200	19,717,100	22,429,200	11,214,300
Total stockholders’ equity	US$ in thousands	20,467,400	21,072,300	20,492,700	22,954,100	0
Return on total capital		2.09%	4.13%	-0.08%	-0.46%	5.84%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $766,200K ÷ ($16,188,100K + $20,467,400K)
= 2.09%

Viatris Inc's return on total capital has shown volatility over the past five years, ranging from negative figures in 2020 to a peak of 4.10% in 2022. Despite this fluctuation, the company's return on total capital has generally been on an upward trend, with a notable improvement in 2022 before experiencing a slight decline in 2023 to 2.55%. This indicates that the company has been able to generate a positive return on the total capital employed in its operations, albeit at varying levels of efficiency. Further analysis would be needed to understand the factors driving these fluctuations and to assess the sustainability of the company's capital allocation decisions.