Viatris Inc (VTRS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.23 | 2.33 | 2.37 | 2.68 | 2.68 |
Viatris Inc has consistently maintained a strong solvency position as indicated by its debt-to-assets, debt-to-capital, and debt-to-equity ratios, which have remained at 0.00 across all reported years from 2020 to 2024. This suggests that the company has not relied heavily on debt to finance its operations and investments, indicating a low level of financial risk associated with its capital structure.
Furthermore, the financial leverage ratio, which measures the extent to which the company relies on debt to finance its operations, has shown a declining trend from 2.68 in 2020 to 2.23 in 2024. This decreasing trend indicates that Viatris has been reducing its reliance on debt over the years, which is a positive sign for its long-term financial health and stability.
Overall, based on these solvency ratios, Viatris Inc appears to be in a strong financial position with a conservative approach to debt management, which bodes well for its ability to weather economic uncertainties and sustainably grow its business.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -0.13 | 1.36 | 5.75 | -0.04 | -0.46 |
Based on the provided data, the interest coverage ratio for Viatris Inc has fluctuated significantly over the years.
- As of December 31, 2020, the interest coverage ratio was -0.46, indicating that the company's operating income was not sufficient to cover its interest expenses.
- By December 31, 2021, the interest coverage ratio deteriorated further to -0.04, suggesting a worsening financial situation where the company's earnings barely covered its interest obligations.
- However, there was a substantial improvement by December 31, 2022, with an interest coverage ratio of 5.75, which indicates that Viatris Inc's operating income was more than sufficient to cover its interest expenses.
- The interest coverage ratio dropped to 1.36 by December 31, 2023, signaling some decrease in the company's ability to meet interest payments with its operating income.
- Finally, by December 31, 2024, the interest coverage ratio decreased to -0.13, once again demonstrating a situation where the company struggled to generate enough operating income to cover its interest charges.
In conclusion, the fluctuations in Viatris Inc's interest coverage ratio highlight varying degrees of financial health and risk over the years, indicating periods of financial strength as well as vulnerability. Further analysis of the company's financial performance and management of debt would be essential to assess the overall fiscal stability and sustainability of Viatris Inc.