Viatris (Viatris) Interest Coverage

: 0 (At Loss) (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Viatris's Operating Income for the three months ended in Dec. 2023 was $-212 Mil. Viatris's Interest Expense for the three months ended in Dec. 2023 was $-141 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Viatris's Interest Coverage or its related term are showing as below:

VTRS' s Interest Coverage Range Over the Past 10 Years
Min: 0.57 Med: 2.66 Max: 4.02
Current: 1.72

VTRS's Interest Coverage is ranked worse than
85.65% of 690 companies
in the Drug Manufacturers industry
Industry Median: 12.175 vs VTRS: 1.72

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Viatris Interest Coverage Historical Data

The historical data trend for Viatris's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Viatris Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.34

0.57

2.79

1.72

Viatris Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																-	2.72	2.56	3.01	-

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Viatris's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Viatris Interest Coverage Distribution

For the Drug Manufacturers industry and Healthcare sector, Viatris's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Viatris's Interest Coverage falls into.

Viatris Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Viatris's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Viatris's Interest Expense was $-573 Mil. Its Operating Income was $983 Mil. And its Long-Term Debt & Capital Lease Obligation was $16,354 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	983.3	/	-573.1
	=	1.72

Viatris's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Viatris's Interest Expense was $-141 Mil. Its Operating Income was $-212 Mil. And its Long-Term Debt & Capital Lease Obligation was $16,354 Mil.

Viatris did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's Financial Strength is.

Viatris (NAS:VTRS) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Viatris Interest Coverage Related Terms

Thank you for viewing the detailed overview of Viatris's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Viatris (Viatris) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Viatris Inc (NAS:VTRS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MYL:Mexico 1VTRS:Italy 0A5V:UK VIA:Germany MYL:Austria

Address

1000 Mylan Boulevard, Canonsburg, PA, USA, 15317

Website

https://www.viatris.com

Viatris was formed in November 2020 through the combination of Upjohn, a wholly owned subsidiary of Pfizer that specialized in off-patent drugs, and Mylan, a global pharmaceutical manufacturer that focused on generic and specialty drugs. By joining forces, Viatris became one of the largest generic drug manufacturers in the world, servicing over 165 countries. Generics (commoditized and complex) and biosimilars make up roughly 40% of Viatris' total sales. Remaining 60% of sales is derived from its portfolio of legacy products which includes Lipitor, Norvasc, Lyrica, and Viagra. While it covers more than 10 major therapeutic areas, Viatris has identified dermatology, ophthalmology, and gastroenterology as its three key areas of focus for future innovations.

Executives

Andrew Cuneo	officer: See Remarks	1000 MYLAN BOULEVARD, CANONSBURG PA 15317
Xiangyang (sean) Ni	officer: President, Greater China	1000 MYLAN BOULEVARD, CANONSBURG PA 15317
Leo Frans Groothuis	director	1000 MYLAN BOULEVARD, CANONSBURG PA 15317
Scott Andrew Smith	director	C/O CELGENE CORPORATION, 86 MORRIS AVENUE, SUMMIT NJ 07901
Elisha W Finney	director	C/O VARIAN MEDICAL SYSTEMS, INC, 3100 HANSEN WAY M/S E-327, PALO ALTO CA 94304
Van Der Meer Mohr Pauline	director	1000 MYLAN BOULEVARD, CANONSBURG PA 15317
Menassie Taddese	officer: See Remarks	1000 MYLAN BOULEVARD, CANONSBURG PA 15317
Robert J Coury	director, officer: Executive Chairman	BUILDING 4, TRIDENT PLACE, MOSQUITO WAY, HATFIELD, HERTFORDSHIRE X0 AL10 9UL
W Don Cornwell	director
Brian Roman	officer: Global General Counsel	1000 MYLAN BOULEVARD, CANONSBURG PA 15317
Anthony Mauro	officer: See Remarks	BUILDING 4, TRIDENT PLACE, MOSQUITO WAY, HATFIELD, HERTFORDSHIRE X0 AL10 9UL
James M Kilts	director	120 PARK AVE, NEW YORK NY 10017
Melina E Higgins	director	BUILDING 4, TRIDENT PLACE, MOSQUITO WAY, HATFIELD, HERTFORDSHIRE X0 AL10 9UL
Ian C Read	director	PFIZER INC ATTN CORPORATE SECRETARY, 235 EAST 42ND STREET, NEW YORK NY 10017
Dillon Joellen Lyons	director	BUILDING 4, TRIDENT PLACE, MOSQUITO WAY, HATFIELD, HARTFORDSHIRE X0 AL 109UL