Viatris Inc (VTRS)

Solvency ratios

	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
Debt-to-assets ratio	0.34	0.35	0.35	0.37	0.36	0.38	0.38	0.35	0.36	0.35	0.36	0.37	0.36	1.01	1.00	—
Debt-to-capital ratio	0.44	0.45	0.45	0.46	0.46	0.49	0.49	0.48	0.49	0.48	0.50	0.51	0.49	1.02	1.00	—
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	—	—	—
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	—	—	—

Viatris Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable at around 0.38 over the past eight quarters, suggesting that Viatris finances a significant portion of its assets with debt. This ratio indicates that 38% of the company's assets are funded by debt.

The debt-to-capital ratio also shows a consistent trend, hovering around 0.47-0.48, indicating that approximately 47-48% of the company's capital structure is made up of debt. This ratio provides insight into the proportion of debt in relation to total capital, including both debt and equity.

The debt-to-equity ratio has shown some fluctuations but has generally remained within the range of 0.88-0.91 in the most recent quarters. This ratio reveals that Viatris relies heavily on debt financing, with approximately 88-91% of its equity being covered by debt. A higher debt-to-equity ratio suggests higher financial risk due to increased leverage.

Lastly, the financial leverage ratio, which measures the company's total assets in relation to equity, has also displayed a consistent trend around 2.33-2.37. This ratio indicates the extent to which Viatris is using debt to finance its assets, with the company having around 2.33-2.37 times more assets than equity.

Overall, Viatris Inc's solvency ratios suggest a relatively stable financial position with consistent reliance on debt financing to support its operations and growth. Investors and stakeholders may monitor these ratios to assess the company's long-term financial health and risk profile.

Coverage ratios

	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
Interest coverage	1.34	1.76	1.91	2.20	2.73	2.93	2.59	1.53	-0.05	-1.32	-1.38	-1.91	-2.09

Interest coverage ratio of Viatris Inc has been fluctuating over the past eight quarters. The trend shows a gradual decrease from 3.40 in Q3 2022 to 1.72 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its operating income has weakened over time. The highest interest coverage ratio of 3.40 was observed in Q3 2022, suggesting a strong ability to meet interest obligations. However, the ratio has since declined, signaling potential financial strain.

An interest coverage ratio below 1 would imply that the company is not generating enough operating income to cover its interest expenses, which may raise concerns about its financial health and ability to meet debt obligations. Viatris Inc's current ratios above 1 indicate that the company is still able to cover its interest payments with its operating income, but the declining trend warrants close monitoring to ensure sustainability and financial stability in the long term.