Roivant Sciences Ltd (ROIV)

Payables 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
Payables	US$ in thousands	53,225	35,226	44,123	50,035	37,830	47,999	41,358	161,304	34,583	24,358	77,158	15,014
Payables turnover		12.92	18.28	13.93	12.15	15.89	12.79	13.57	5.22	22.41

March 31, 2024 calculation

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

Roivant Sciences Ltd's payables turnover has been fluctuating over the past few quarters. On Mar 31, 2024, the payables turnover ratio was 12.92, indicating that the company's payables turnover cycle was approximately 12.92 times during the period. This ratio decreased compared to Dec 31, 2023, when it stood at 18.28. The decrease suggests that the company took longer to pay its suppliers or had lower levels of payables relative to its purchases during the period.

Comparing the current ratio to historical data, it is lower than the peak seen in Dec 31, 2021, when it reached 22.41. This could indicate a change in the company's payment terms or supplier relationships. A lower payables turnover ratio may suggest potential liquidity issues or strained relationships with suppliers due to delayed payments. However, it could also indicate improved efficiency in managing payables.

Overall, a declining payables turnover ratio may warrant further investigation into the company's cash flow management practices, supplier relationships, and overall financial health.