Roivant Sciences Ltd (ROIV)

Days of inventory on hand (DOH)

		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
Inventory turnover		19.50	122.86	125.34	143.92	217.66	10.25	7.55	—	—
DOH	days	18.72	2.97	2.91	2.54	1.68	35.60	48.32	—	—

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 19.50
= 18.72

Roivant Sciences Ltd's Days of Inventory on Hand (DOH) has exhibited significant fluctuations over the past several quarters.

The company's DOH increased substantially from 1.68 days in Q1 2023 to 35.60 days in Q4 2022, indicating that the company may have experienced issues with managing its inventory efficiently during that period. This sudden increase in DOH suggests that Roivant may have held excess inventory or faced challenges in selling off its products promptly.

However, the company managed to improve its inventory management significantly in the subsequent quarters. The DOH decreased to 2.54 days in Q2 2023, further dropping to 2.91 days in Q3 2023, and then to 2.97 days in Q4 2023. These reductions suggest that Roivant took steps to streamline its inventory processes and enhance its inventory turnover efficiency.

The latest reported DOH figure of 18.72 days in Q1 2024 indicates a slight increase compared to the previous quarters. While the increase may not be as significant as the spike observed in Q4 2022, Roivant should closely monitor its inventory levels to prevent a potential trend reversal.

Overall, the trend in Roivant Sciences Ltd's DOH reflects fluctuations in its inventory management practices over the past few quarters, with periods of excessive inventory levels followed by improvements in efficiency. Careful monitoring and continual evaluation of inventory practices will be essential for the company to maintain optimal inventory turnover rates in the future.