Roivant Sciences Ltd (ROIV)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	90,017	87,063	67,973	44,317	33,312	22,259	36,493	44,730	48,245
Property, plant and equipment	US$ in thousands	19,058	21,857	24,477	36,270	39,086	37,295	39,171	31,689	25,905	21,606	16,904	15,550
Fixed asset turnover		4.72	3.98	2.78	1.22	0.85	0.60	0.93	1.41	1.86

March 31, 2024 calculation

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

The fixed asset turnover ratio of Roivant Sciences Ltd has demonstrated significant improvement over the past few quarters. The ratio increased steadily from 1.86 in Mar 31, 2022, to 4.72 in Mar 31, 2024. This indicates that the company is generating more revenue relative to its investment in fixed assets, reflecting improved efficiency in asset utilization.

The substantial increase in fixed asset turnover signifies that Roivant Sciences Ltd's management has been successful in optimizing the utilization of fixed assets to generate sales. This can be attributed to effective operational management, cost-efficient production processes, and possibly strategic investments in enhancing asset productivity.

Overall, the upward trend in the fixed asset turnover ratio suggests that Roivant Sciences Ltd is making efficient use of its fixed assets to drive revenue growth, which is a positive indicator of the company's operational performance and financial health.