Viatris Inc (VTRS)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	41,500,900	44,754,100	45,330,000	47,343,700	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	31,243,100	30,155,400	30,145,900
Total stockholders’ equity	US$ in thousands	18,635,500	19,792,400	19,520,000	20,014,300	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	12,547,900	11,746,200	11,262,700
Financial leverage ratio		2.23	2.26	2.32	2.37	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	2.49	2.57	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 been relatively stable over the past few years, ranging from 2.23 to 2.75. This ratio indicates the company's level of debt financing relative to its equity. A higher financial leverage ratio suggests a higher degree of financial risk, as the company relies more on debt to finance its operations.

In the case of Viatris Inc, the trend of the financial leverage ratio shows a slight decrease over the most recent periods, potentially indicating a reduction in the company's reliance on debt to fund its activities. However, the ratio remains above 2 throughout the period, signifying that Viatris Inc still maintains a significant level of debt compared to its equity.

Overall, a financial leverage ratio of around 2.2 to 2.7 indicates a moderate level of leverage, with potential risks associated with the company's debt obligations. It will be crucial for Viatris Inc to manage its debt levels effectively to balance financial risk and maintain financial stability in the long term.