Roivant Sciences Ltd (ROIV)

Inventory turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Cost of revenue	US$ in thousands	687,443	600,960	775,033
Inventory	US$ in thousands	35,251	2,761	0
Inventory turnover		19.50	217.66	—

March 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $687,443K ÷ $35,251K
= 19.50

The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times in a period it sells and replaces its inventory. In the case of Roivant Sciences Ltd, the inventory turnover has exhibited significant fluctuations over the past few years.

In March 2024, Roivant Sciences Ltd had an inventory turnover ratio of 19.50, indicating that the company sold and replaced its inventory approximately 19.50 times during the year. This represents a significant decrease from the inventory turnover of 217.66 in March 2023, suggesting a notable decline in the efficiency of managing inventory.

The unusual drop in the inventory turnover ratio could be due to various factors such as changes in production levels, demand for products, or inventory management practices. Investors and stakeholders may want to further investigate the reasons behind this sharp decline to assess the company's operational performance and future prospects.