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VTRS (Viatris) Interest Coverage : 0 (At Loss) (As of Jun. 2024)


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What is Viatris Interest Coverage?

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 Jun. 2024 was $-117 Mil. Viatris's Interest Expense for the three months ended in Jun. 2024 was $-146 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: 0.68


VTRS's Interest Coverage is ranked worse than
95.14% of 658 companies
in the Drug Manufacturers industry
Industry Median: 13.2 vs VTRS: 0.68

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.

* Premium members only.

Viatris Interest Coverage Chart

Viatris Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.34 - 0.57 2.79 1.72

Viatris Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.56 3.01 - 2.07 -

Competitive Comparison of Viatris's Interest Coverage

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's Interest Coverage Distribution in the Drug Manufacturers Industry

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 Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, Viatris's Interest Expense was $-146 Mil. Its Operating Income was $-117 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,923 Mil.

Viatris did not have earnings to cover the interest expense.

* 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.

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 Business Description

Address
1000 Mylan Boulevard, Canonsburg, PA, USA, 15317
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
Rajiv Malik director, officer: President BUILDING 4, TRIDENT PLACE, MOSQUITO WAY, HATFIELD, HERTFORDSHIRE X0 AL10 9UL
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
Paul Campbell officer: See Remarks BUILDING 4, TRIDENT PLACE, MOSQUITO WAY, HATFIELD, HERTFORDSHIRE X0 AL10 9UL
Dillon Joellen Lyons director BUILDING 4, TRIDENT PLACE, MOSQUITO WAY, HATFIELD, HARTFORDSHIRE X0 AL 109UL
Xiangyang (sean) Ni officer: President, Greater China 1000 MYLAN BOULEVARD, CANONSBURG PA 15317
Andrew Cuneo officer: See Remarks 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
James M Kilts director 120 PARK AVE, NEW YORK NY 10017