Roivant Sciences Ltd (ROIV)

Fixed asset turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Revenue	US$ in thousands	90,017	33,312	48,245
Property, plant and equipment	US$ in thousands	19,058	39,086	25,905
Fixed asset turnover		4.72	0.85	1.86

March 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $90,017K ÷ $19,058K
= 4.72

The fixed asset turnover ratio for Roivant Sciences Ltd has exhibited significant fluctuations over the last three years, standing at 4.72 in 2024, 0.85 in 2023, and 1.86 in 2022. A higher fixed asset turnover ratio indicates that the company is generating more revenue relative to its investment in fixed assets.

The notable increase in the fixed asset turnover ratio from 2023 to 2024 suggests that Roivant Sciences Ltd has become more efficient in utilizing its fixed assets to generate sales. This improvement could be attributed to better asset management practices or an increase in sales volume without a corresponding increase in fixed assets.

Conversely, the significant drop in the fixed asset turnover ratio in 2023 may indicate inefficiencies in asset utilization, possibly due to underutilization of fixed assets or a decline in sales relative to the investment in fixed assets.

Overall, the trend in Roivant Sciences Ltd's fixed asset turnover ratio highlights the importance of effectively managing fixed assets to optimize operational efficiency and maximize revenue generation. It is essential for the company to continue monitoring and improving this ratio to ensure sustainable growth and profitability in the long term.