Viatris Inc (VTRS)

Debt-to-assets ratio

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 16,188,100 17,076,900 17,246,000 18,069,400 18,015,200 18,724,500 19,206,400 18,762,500 19,717,100 19,854,300 20,917,000 22,102,200 22,429,200
Total assets US$ in thousands 47,685,500 48,742,600 48,695,200 49,290,200 50,022,200 48,662,600 51,125,100 53,466,900 54,842,800 56,070,400 57,984,100 58,979,200 61,553,000
Debt-to-assets ratio 0.34 0.35 0.35 0.37 0.36 0.38 0.38 0.35 0.36 0.35 0.36 0.37 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 remained relatively stable over the past eight quarters, consistently hovering around 0.38 to 0.41. This ratio indicates that, on average, approximately 38% to 41% of the company's total assets are financed by debt.

A lower debt-to-assets ratio suggests that Viatris relies more on equity financing rather than debt, which can be viewed positively as it indicates lower financial risk. However, a higher debt-to-assets ratio may indicate higher leverage and financial risk, as the company is relying more on debt to finance its operations and investments.

Overall, Viatris Inc's consistent debt-to-assets ratio indicates a relatively balanced capital structure, with a reasonable level of debt relative to its total assets across the quarters analyzed. It suggests that the company has maintained a prudent approach to managing its debt levels while financing its operations and investments.