Roivant Sciences Ltd (ROIV)

Payables turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Cost of revenue	US$ in thousands	687,443	600,960	775,033
Payables	US$ in thousands	53,225	37,830	34,583
Payables turnover		12.92	15.89	22.41

March 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $687,443K ÷ $53,225K
= 12.92

The payables turnover ratio for Roivant Sciences Ltd has shown a downward trend over the past three fiscal years. In particular, the payables turnover ratio decreased from 22.41 in March 2022 to 15.89 in March 2023, and further decreased to 12.92 in March 2024. This indicates that the company took longer to pay its creditors in the most recent fiscal year compared to the prior years. A decreasing payables turnover ratio could suggest potential liquidity issues, inefficiencies in managing payables, or changes in the company's payment terms with suppliers. Further investigation into the reasons behind this trend and its impact on the company's financial health and cash flow management would be beneficial.