Roivant Sciences Ltd (ROIV)

Short-term

Turnover ratios

Roivant Sciences Ltd's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales.

1. Inventory turnover:
- In March 2021, the inventory turnover was very low at 0.03, indicating that the company's inventory is not selling quickly.
- There is no data available for March 2022, but in March 2023, the inventory turnover significantly improved to 4.75, suggesting more efficient management of inventory.
- However, in March 2024, the inventory turnover decreased to 0.79, which may indicate slower sales or potential inventory management issues.
- There is no data for March 2025, so it's unclear how the inventory turnover trend continued.

2. Receivables turnover:
- The receivables turnover ratio increased from 1.72 in March 2021 to 8.21 in March 2022, indicating a much faster collection of receivables.
- However, in March 2023, the ratio dropped to 1.63, which may suggest a slowdown in collecting receivables.
- In March 2024, the ratio decreased further to 1.51, indicating potential difficulties in collecting sales on credit.
- There is no data available for March 2025, so the trend post-2024 is unknown.

3. Payables turnover:
- The payables turnover ratio shows how quickly a company pays its suppliers. The ratio increased from 0.10 in March 2021 to 0.26 in March 2022, suggesting a faster payment to suppliers.
- In March 2023, the ratio further improved to 0.35, indicating continued efficiency in managing payables.
- By March 2024, the ratio increased to 0.53, showing that the company is paying its payables even more rapidly.
- However, there is no data for March 2025, making it unclear how this trend continued.

4. Working capital turnover:
- The working capital turnover ratio reflects how effectively the company utilizes its working capital to generate revenue.
- The ratios for March 2021 to 2024 are very low, ranging from 0.01 to 0.04, indicating that the company may not be efficiently using its working capital to generate sales.
- There is no data available for March 2025, so it's uncertain whether there was an improvement in utilizing working capital for revenue generation.

In summary, Roivant Sciences Ltd's activity ratios show varying levels of efficiency in managing assets and liabilities to generate sales over the years, with improvements in some areas and potential challenges in others. Monitoring these ratios can provide valuable insights into the company's operational performance and financial health.

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Average number of days

The activity ratios of Roivant Sciences Ltd provide insights into how effectively the company manages its operating cycle.

1. Days of Inventory on Hand (DOH):
- In March 2021, Roivant Sciences held inventory for an extended period of 11,333.10 days, indicating inefficient inventory management.
- In March 2022, the DOH data is missing, making it challenging to assess inventory turnover for that period.
- By March 2023, the company improved its inventory management significantly, reducing DOH to 76.76 days and potentially freeing up capital tied in inventory.
- However, the DOH increased significantly to 460.11 days by March 2024, which may suggest inventory management challenges or changes in production or sales levels.

2. Days of Sales Outstanding (DSO):
- The DSO metric reflects how efficiently Roivant Sciences collects receivables from customers.
- In March 2021, the company took 212.17 days on average to collect payment from customers, indicating sluggish collections.
- The DSO improved significantly to 44.44 days by March 2022, potentially demonstrating more effective credit and collection policies.
- However, the DSO increased to 224.22 days by March 2023 and further to 242.21 days by March 2024, which may indicate issues with credit management or an increase in outstanding receivables.

3. Number of Days of Payables:
- This ratio measures how long it takes Roivant Sciences to pay its suppliers.
- In March 2021, the company took 3,646.45 days on average to pay its suppliers, indicating a lengthy payables period.
- The number of days of payables decreased significantly to 1,407.85 days by March 2022 and further to 1,051.79 days by March 2023, suggesting improved payables management.
- By March 2024, the days of payables decreased to 694.72 days, potentially indicating quicker payment cycles or negotiation of better payment terms.

Overall, the analysis of activity ratios for Roivant Sciences Ltd highlights fluctuations in inventory management, receivables collection, and payables management over the years, which may impact the company's liquidity and operational efficiency.

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Long-term

The fixed asset turnover ratio for Roivant Sciences Ltd has shown significant improvement over the period from March 31, 2021, to March 31, 2023, increasing from 0.31 to 1.57. This indicates that the company is generating more revenue relative to its investment in fixed assets during this period. However, there is a lack of data for 2024 and 2025, which may hinder a complete analysis of the trend.

In contrast, the total asset turnover ratio has also seen an upward trend over the same period, albeit at a slower pace. It increased from 0.01 in March 31, 2021, to 0.03 in March 31, 2023. This suggests that Roivant Sciences Ltd is generating more revenue in relation to its total assets. The ratio remained stable at 0.02 in March 31, 2024, with no available data for 2025.

Overall, the improvement in both fixed asset turnover and total asset turnover ratios indicates that Roivant Sciences Ltd is effectively utilizing its assets to generate revenue. However, the lack of data for the more recent years prevents a comprehensive analysis of the long-term activity ratios for the company.