GURUFOCUS.COM » STOCK LIST » USA » NAS » Viatris Inc (NAS:VTRS) » Definitions » Financial Strength
Switch to:

Viatris Financial Strength

: 4 (As of Jun. 2022)
View and export this data going back to 1986. Start your Free Trial

Viatris has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Viatris's Interest Coverage for the quarter that ended in Jun. 2022 was 3.84. Viatris's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.29. As of today, Viatris's Altman Z-Score is 0.89.


Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Viatris's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where Viatris's Financial Strength falls into.



Viatris Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Viatris's Interest Expense for the months ended in Jun. 2022 was $-146 Mil. Its Operating Income for the months ended in Jun. 2022 was $560 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $19,399 Mil.

Viatris's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*559.6/-145.9
=3.84

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Viatris's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1871.3 + 19398.6) / 16467.2
=1.29

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Viatris has a Z-score of 0.89, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.89 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Viatris  (NAS:VTRS) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Viatris has the Financial Strength Rank of 4.


Viatris Financial Strength Related Terms

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


Viatris Business Description

Viatris logo
Address
1000 Mylan Boulevard, Canonsburg, PA, USA, 15317
Formed by the combination of Mylan and Pfizer's Upjohn business in 2020, Viatris is one of the world's largest generic drug manufacturers, with a substantial off-patent branded drug portfolio. Its portfolio consists of more than 1,400 molecules with penetration across most of the developed world and in select emerging markets. The company's branded drug portfolio consists of off-patent blockbuster drugs that continue to generate strong sales, including Lipitor, Norvasc, Lyrica, Viagra, and EpiPen. While global competition has facilitated the commodification of small-molecule generic drugs, the company has demonstrated an edge over peers in its ability to manufacture complex generics (for example, generic Advair and Copaxone).
Executives
Roman Brian officer: Global General Counsel 1000 MYLAN BOULEVARD CANONSBURG PA 15317
Cuneo Andrew officer: See Remarks 1000 MYLAN BOULEVARD CANONSBURG PA 15317
Mauro Anthony officer: See Remarks BUILDING 4, TRIDENT PLACE MOSQUITO WAY HATFIELD, HERTFORDSHIRE X0 AL10 9UL
Ni Xiangyang (sean) officer: President, Greater China 1000 MYLAN BOULEVARD CANONSBURG PA 15317
Taddese Menassie officer: See Remarks 1000 MYLAN BOULEVARD CANONSBURG PA 15317
Mark Richard A director 2052 STONEBRIDGE CT WHEATON IL 60189
Cornwell W Don director
Read Ian C director PFIZER INC ATTN CORPORATE SECRETARY 235 EAST 42ND STREET NEW YORK NY 10017
Kilts James M director 120 PARK AVE NEW YORK NY 10017
Coury Robert J director, officer: Executive Chairman BUILDING 4, TRIDENT PLACE MOSQUITO WAY HATFIELD, HERTFORDSHIRE X0 AL10 9UL
Van Der Meer Mohr Pauline director 1000 MYLAN BOULEVARD CANONSBURG PA 15317
Campbell Paul officer: See Remarks BUILDING 4, TRIDENT PLACE MOSQUITO WAY HATFIELD, HERTFORDSHIRE X0 AL10 9UL
Lyons Dillon Joellen director BUILDING 4, TRIDENT PLACE MOSQUITO WAY HATFIELD, HARTFORDSHIRE X0 AL 109UL
Malik Rajiv director, officer: President BUILDING 4, TRIDENT PLACE MOSQUITO WAY HATFIELD, HERTFORDSHIRE X0 AL10 9UL
Dimick Neil F director BUILDING 4, TRIDENT PLACE MOSQUITO WAY HATFIELD, HERTFORDSHIRE X0 AL10 9UL

Viatris Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)