Viatris Inc (VTRS)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	41,500,900	47,685,500	50,022,200	54,842,800	61,553,000
Total stockholders’ equity	US$ in thousands	18,635,500	20,467,400	21,072,300	20,492,700	22,954,100
Financial leverage ratio		2.23	2.33	2.37	2.68	2.68

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $41,500,900K ÷ $18,635,500K
= 2.23

The financial leverage ratio of Viatris Inc has exhibited a slight decrease over the past few years, declining from 2.68 as of December 31, 2020, to 2.23 as of December 31, 2024. This indicates that the company's reliance on debt to finance its operations has been gradually reducing. A financial leverage ratio of 2.23 as of December 31, 2024, means that for every dollar of equity, Viatris Inc has $2.23 of debt. This trend suggests a potential improvement in the company's financial risk profile and may indicate more conservative financial management practices. However, it is important to continue monitoring this ratio to ensure a healthy balance between debt and equity financing.