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.
Peer comparison
Dec 31, 2023