Roivant Sciences Ltd (ROIV)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	687,443	643,791	614,770	608,078	600,960	613,969	561,238	841,351	775,033
Inventory	US$ in thousands	35,251	5,240	4,905	4,225	2,761	59,875	74,293	—	0	53,868	43,807	47,652
Inventory turnover		19.50	122.86	125.34	143.92	217.66	10.25	7.55	—	—

March 31, 2024 calculation

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

Roivant Sciences Ltd's inventory turnover has fluctuated over the past several quarters. As of March 31, 2024, the inventory turnover stood at 19.50, indicating that the company is converting its inventory into sales approximately 19.50 times during the period. This is a significant decrease from the previous quarter's high turnover of 217.66 on December 31, 2023.

The sharp decline in inventory turnover from December 2023 to March 2024 may suggest that Roivant Sciences Ltd is facing challenges in managing its inventory efficiently or experiencing slower sales growth. It would be essential for the company to investigate the reasons behind this decrease and take appropriate measures to optimize its inventory management processes.

Overall, analyzing inventory turnover can provide valuable insights into a company's operational efficiency and supply chain management. Monitoring this ratio over time can help identify trends and potential areas for improvement within the business.