Roivant Sciences Ltd (ROIV)

Days of sales outstanding (DSO)

		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
Receivables turnover		1.68	2.12	1.30	1.20	1.10	0.80	1.46	—	12.44
DSO	days	217.11	172.21	279.86	305.26	332.86	458.60	250.41	—	29.34

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 1.68
= 217.11

The days of sales outstanding (DSO) for Roivant Sciences Ltd have shown significant fluctuations over the past several quarters, reflecting variability in the company's accounts receivable collection efficiency.

As of March 31, 2024, the DSO stands at 217.11 days, which indicates that on average, it takes the company approximately 217 days to collect its accounts receivable from customers. This represents an improvement from the previous quarter where the DSO was 172.21 days.

Looking back over the past year, the DSO has ranged from a low of 29.34 days on March 31, 2022, to a high of 458.60 days on December 31, 2022. Such wide fluctuations in DSO may suggest inconsistencies in the company's credit policies, collection efforts, or customer payment behavior.

It is essential for Roivant Sciences Ltd to closely monitor and manage its DSO to ensure timely collection of receivables, optimize cash flow, and maintain healthy liquidity levels. Further analysis and potential adjustments to credit terms or collection procedures may be warranted to stabilize and improve the DSO metric over time.