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.