Viatris Inc (VTRS)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	25,400	961,200	1,302,000	2,093,800	2,178,300	2,422,600	2,598,500	2,798,500	3,137,200	1,831,800	1,963,600	1,163,800	26,600	9,700	-328,800	150,000	752,400	1,582,100	1,483,700	1,412,600
Interest expense (ttm)	US$ in thousands	550,000	576,000	571,900	569,800	578,400	579,300	591,000	593,200	592,400	593,500	592,200	613,400	636,200	632,400	597,800	546,900	497,800	479,400	491,000	506,000
Interest coverage		0.05	1.67	2.28	3.67	3.77	4.18	4.40	4.72	5.30	3.09	3.32	1.90	0.04	0.02	-0.55	0.27	1.51	3.30	3.02	2.79

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $25,400K ÷ $550,000K
= 0.05

The interest coverage ratio of Viatris Inc has shown fluctuations over the period under review. The ratio indicates the company's ability to meet its interest obligations from its earnings before interest and taxes (EBIT). A higher ratio reflects a stronger ability to cover interest expenses.

Looking at the data provided, the interest coverage ratio ranged from a low of -0.55 on June 30, 2021, to a high of 5.30 on December 31, 2022. The ratio improved significantly from March 31, 2021, when it was at 0.27, to December 31, 2022, reaching 5.30. However, it declined thereafter, reaching 0.05 on December 31, 2024.

Overall, the trend in the interest coverage ratio shows some volatility, with periods of improvement followed by declines. It is essential for Viatris Inc to closely monitor and manage its interest coverage ratio to ensure a healthy financial position and the ability to meet its interest obligations in a sustainable manner.