Roivant Sciences Ltd (ROIV)

Inventory turnover

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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	Mar 31, 2021	Dec 31, 2020
Cost of revenue (ttm)	US$ in thousands	6,494	10,701	14,110	15,324	15,560	20,534	25,190	25,565	23,077	14,150	7,210	9,950	8,966	8,985	8,285	2,619	2,057	1,579
Inventory	US$ in thousands	—	—	-192,537	33,997	35,251	5,240	4,905	4,225	2,761	59,875	74,293	—	-16,463	53,868	43,807	47,652	—	—
Inventory turnover		—	—	—	0.45	0.44	3.92	5.14	6.05	8.36	0.24	0.10	—	—	0.17	0.19	0.05	—	—

March 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,494K ÷ $—K
= —

Roivant Sciences Ltd's inventory turnover has displayed fluctuations over the reported periods. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced during a specific period.

The data shows that the inventory turnover was not calculable for December 31, 2020, March 31, 2021, March 31, 2022, June 30, 2022, September 30, 2024, December 31, 2024, and March 31, 2025. In June 30, 2021, the inventory turnover was particularly low at 0.05, signifying a slower movement of inventory. However, by December 31, 2022, the ratio increased to 0.24, indicating a more efficient management of inventory.

The most significant improvement was observed in the period from March 31, 2023, to June 30, 2023, where the inventory turnover increased substantially from 8.36 to 6.05. This sudden drop is noteworthy as it may indicate either a decrease in sales or an increase in average inventory levels.

Subsequently, the inventory turnover ratio continued to decline gradually, reaching 0.44 by March 31, 2024, before slightly increasing to 0.45 by June 30, 2024. The decreasing trend suggests a potential inefficiency in managing inventory levels during these periods.

Overall, it is essential for Roivant Sciences Ltd to monitor its inventory turnover closely to ensure optimal inventory management, minimize carrying costs, and maintain healthy cash flow levels.