Viatris Inc (VTRS)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	20,467,400	21,072,300	20,492,700	22,954,100	0
Debt-to-capital ratio		0.44	0.46	0.49	0.49	1.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $16,188,100K ÷ ($16,188,100K + $20,467,400K)
= 0.44

The debt-to-capital ratio of Viatris Inc has displayed a declining trend over the past five years, decreasing from 0.52 in 2019 to 0.47 in 2023. This ratio measures the proportion of total debt relative to the company's total capital, providing insights into its financial leverage and solvency. The decreasing trend indicates that the company has been reducing its reliance on debt financing in relation to its total capital over the years.

A lower debt-to-capital ratio suggests that Viatris Inc has a stronger capital structure with a lower level of debt compared to its total capital. This may be viewed positively by investors and creditors as it indicates lower financial risk and potentially greater financial stability. However, it is crucial to consider the reasons behind this trend and assess the impact on the company's overall financial health and strategic decisions.

Overall, the decreasing debt-to-capital ratio of Viatris Inc reflects a potentially improved financial position and reduced financial risk over the analyzed period. It would be beneficial to further investigate the company's debt management strategies and their impact on profitability and long-term sustainability.