Viatris Inc (VTRS)

Debt-to-capital 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	Sep 30, 2020	Jun 30, 2020	Mar 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	11,535,000	11,385,200	—
Total stockholders’ equity	US$ in thousands	20,467,400	20,865,600	20,843,300	20,927,900	21,072,300	19,182,300	19,805,400	20,447,700	20,492,700	21,141,300	21,206,900	21,414,700	22,954,100	-201,000	-1,000	0
Debt-to-capital ratio		0.44	0.45	0.45	0.46	0.46	0.49	0.49	0.48	0.49	0.48	0.50	0.51	0.49	1.02	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 been relatively stable over the past eight quarters, ranging between 0.47 and 0.52. This ratio indicates that, on average, around 47% to 52% of the company's capital structure is funded by debt, with the remainder financed by equity.

The consistency in the debt-to-capital ratio suggests that Viatris has maintained a balanced capital structure without significant fluctuations in its leverage levels. It is important to note that a lower ratio generally indicates lower financial risk, while a higher ratio may suggest higher risk due to increased debt dependency.

Overall, Viatris Inc's stable debt-to-capital ratio implies a controlled approach to managing its debt levels and provides insights into the company's financial stability and risk profile over the evaluated period.