Viatris Inc (VTRS)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 16,188,100 | 18,015,200 | 19,717,100 | 22,429,200 | 11,214,300 |
| Total assets | US$ in thousands | 47,685,500 | 50,022,200 | 54,842,800 | 61,553,000 | 31,255,500 |
| Debt-to-assets ratio | 0.34 | 0.36 | 0.36 | 0.36 | 0.36 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $16,188,100K ÷ $47,685,500K
= 0.34
The debt-to-assets ratio of Viatris Inc has shown a slight declining trend over the past five years, decreasing from 0.41 in 2019 to 0.38 in 2023. This indicates that the company has been able to reduce its reliance on debt financing relative to its total assets over the years. A lower debt-to-assets ratio implies a lower financial risk as the company has less debt compared to its total assets.
A debt-to-assets ratio of 0.38 in 2023 suggests that 38% of Viatris Inc's total assets are financed by debt. This indicates that the company primarily relies on equity financing to support its assets, which can be seen as a positive sign of financial stability. However, it is essential to monitor this ratio over time to ensure that the company maintains a healthy balance between debt and equity financing to support its operations and growth strategies.
Peer comparison
Dec 31, 2023