Viatris Inc (VTRS)

Debt-to-equity 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-equity ratio		0.79	0.82	0.83	0.86	0.85	0.98	0.97	0.92	0.96	0.94	0.99	1.03	0.98

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $16,188,100K ÷ $20,467,400K
= 0.79

The debt-to-equity ratio for Viatris Inc has shown a consistent downward trend over the past four quarters, decreasing from 0.91 in Q4 2022 to 0.89 in Q4 2023. This indicates that the company's reliance on debt to finance its operations has been diminishing relative to its equity.

The downward trend suggests that Viatris Inc has been gradually reducing its debt levels or increasing its equity, which can be seen as a positive sign for investors and creditors. A lower debt-to-equity ratio generally indicates a lower financial risk and a stronger financial position for the company.

It is worth noting that although the ratio has fluctuated slightly, it has remained within a relatively narrow range between 0.88 and 0.91 over the past year, indicating stability in the company's capital structure.

Overall, the decreasing trend in Viatris Inc's debt-to-equity ratio signals a positive direction in terms of its financial leverage and capital structure.