Viatris Inc (VTRS)

Financial leverage 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
Total assets	US$ in thousands	47,685,500	48,742,600	48,695,200	49,290,200	50,022,200	48,662,600	51,125,100	53,466,900	54,842,800	56,070,400	57,984,100	58,979,200	61,553,000	11,413,000	11,411,800	0
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
Financial leverage ratio		2.33	2.34	2.34	2.36	2.37	2.54	2.58	2.61	2.68	2.65	2.73	2.75	2.68	—	—	—

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $47,685,500K ÷ $20,467,400K
= 2.33

The financial leverage ratio of Viatris Inc has been relatively stable in recent quarters, ranging from 2.33 to 2.37. This ratio indicates that, on average, the company is relying on debt to finance its operations and growth initiatives. A higher financial leverage ratio suggests a greater reliance on debt, which can amplify both returns and risks for the company.

The slight decrease in the financial leverage ratio from Q1 2022 to Q4 2022 may indicate that the company has been making efforts to reduce its debt levels or increase its equity capital. However, the ratio has remained relatively consistent in the subsequent quarters, suggesting that Viatris Inc's capital structure has stabilized.

Overall, with a financial leverage ratio above 2, investors and stakeholders should closely monitor Viatris Inc's ability to service its debt obligations and manage its financial risk to ensure sustainable growth and financial stability.