Viatris Inc (VTRS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Viatris Inc's solvency ratios indicate a strong financial position with consistent and significant improvements over the years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have remained stable at 0.00 throughout the periods reported, showing that the company's assets are not predominantly financed by debt.
The financial leverage ratio, which measures the extent to which a company is using debt to finance its operations, has shown a decreasing trend from 2.68 in March 2020 to 2.23 by December 2024. This indicates that Viatris has been reducing its reliance on debt financing over time, which is a positive sign of financial health and reduced financial risk.
Overall, Viatris Inc's solvency ratios suggest a conservative approach to capital structure and effective management of debt levels, which bodes well for the company's long-term financial stability and growth prospects.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio of Viatris Inc has varied significantly over the reporting periods provided. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
From March 31, 2020, to June 30, 2022, Viatris Inc showed a gradually increasing trend in interest coverage, reaching its peak at 5.30 on December 31, 2022. This indicates an improved ability to cover its interest obligations during this period.
However, starting from March 31, 2023, the interest coverage ratio began to decline, indicating a potential strain on the company's ability to cover its interest expenses. The ratio fluctuated between 3.67 to 0.05 from March 31, 2024, to December 31, 2024, showing a downward trend overall.
It is important to note that an interest coverage ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses, which could be a concern for creditors and investors.
Overall, based on the data provided, Viatris Inc experienced fluctuations in its interest coverage ratio, with periods of improvement followed by periods of decline. Investors and stakeholders should monitor this ratio closely to assess the company's financial health and ability to meet its debt obligations.