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
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 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
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

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.