Roivant Sciences Ltd (ROIV)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 19.50 | 122.86 | 125.34 | 143.92 | 217.66 | 10.25 | 7.55 | — | — |
| Receivables turnover | 1.68 | 2.12 | 1.30 | 1.20 | 1.10 | 0.80 | 1.46 | — | 12.44 |
| Payables turnover | 12.92 | 18.28 | 13.93 | 12.15 | 15.89 | 12.79 | 13.57 | 5.22 | 22.41 |
| Working capital turnover | 0.01 | 0.01 | 0.05 | 0.03 | 0.02 | 0.02 | 0.02 | 0.03 | 0.02 |
Inventory Turnover:
Roivant Sciences Ltd's inventory turnover ratio has fluctuated significantly over the past few quarters, ranging from a low of 7.55 to a high of 217.66. The recent ratio of 19.50 indicates that the company is turning over its inventory 19.50 times during the year, which suggests efficient management of inventory levels in the most recent quarter.
Receivables Turnover:
The receivables turnover ratio for Roivant has also varied, with values between 0.80 and 2.12. The latest ratio of 1.68 indicates that the company collects its outstanding receivables 1.68 times during the year. This suggests that Roivant may have improved its collection efficiency compared to previous quarters, although there is room for further enhancement.
Payables Turnover:
Roivant's payables turnover has been relatively stable, with values ranging from 12.79 to 22.41. The ratio of 12.92 in the most recent quarter implies that the company pays its suppliers 12.92 times per year. This indicates that Roivant manages its trade payables effectively, settling its obligations in a timely manner.
Working Capital Turnover:
The working capital turnover ratio has been consistently low for Roivant, with values hovering around 0.02. The latest ratio of 0.01 suggests that the company generates revenues equal to only 0.01 times its working capital during the year. This may indicate that Roivant is not efficiently utilizing its working capital to generate sales and could potentially look to optimize its capital management strategies.
Overall, while Roivant Sciences Ltd shows variability in its activity ratios, the company appears to be efficient in managing its inventory and payables, with potential areas for improvement in receivables management and working capital utilization.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 18.72 | 2.97 | 2.91 | 2.54 | 1.68 | 35.60 | 48.32 | — | — |
| Days of sales outstanding (DSO) | days | 217.11 | 172.21 | 279.86 | 305.26 | 332.86 | 458.60 | 250.41 | — | 29.34 |
| Number of days of payables | days | 28.26 | 19.97 | 26.20 | 30.03 | 22.98 | 28.54 | 26.90 | 69.98 | 16.29 |
Days of inventory on hand (DOH) measures how many days, on average, a company holds inventory before selling it. Roivant Sciences Ltd's DOH has fluctuated significantly over the past quarters, ranging from as low as 1.68 days to as high as 48.32 days. The sudden increase in DOH in Q4 2022 and Q1 2023 indicates potential inventory management issues or changes in the company's operations. However, the DOH improved drastically in the most recent quarter, suggesting better inventory control.
Days of sales outstanding (DSO) reflects how long it takes for a company to collect payments from its customers. Roivant Sciences Ltd's DSO has also varied widely, with values ranging from 29.34 days to 458.60 days. The extremely high DSO values in Q1 and Q2 of 2023 indicate difficulties in collecting payments promptly. The significant improvement in DSO in the previous quarter is a positive sign, showing enhanced efficiency in collecting receivables.
Number of days of payables measures how long a company takes to pay off its suppliers. Roivant Sciences Ltd's payables days have been relatively stable, hovering around 20 to 30 days, except for an anomaly in Q2 2022 where it reached almost 70 days. This could signify potential cash flow issues or changes in payment terms with suppliers during that period.
Overall, Roivant Sciences Ltd should closely monitor its activity ratios to ensure efficient management of inventory, receivables, and payables. Improving these ratios can optimize working capital management and enhance the company's overall financial health.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 4.72 | 3.98 | 2.78 | 1.22 | 0.85 | 0.60 | 0.93 | 1.41 | 1.86 |
| Total asset turnover | 0.01 | 0.01 | 0.03 | 0.02 | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 |
The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. In the case of Roivant Sciences Ltd, the trend in the fixed asset turnover ratio indicates an improvement over the periods under review.
The fixed asset turnover ratio has increased steadily from 1.86 in March 2022 to 4.72 in March 2024. This indicates that Roivant Sciences Ltd has become more efficient in utilizing its fixed assets to generate revenue over time.
On the other hand, the total asset turnover ratio measures how efficiently a company utilizes all of its assets to generate revenue. The total asset turnover ratio for Roivant Sciences Ltd has remained relatively low and stable throughout the periods under review, ranging from 0.01 to 0.03.
Overall, the increasing trend in the fixed asset turnover ratio suggests that Roivant Sciences Ltd has been able to generate more revenue from its fixed assets over time, indicating improved operational efficiency in asset utilization. However, the low and stable total asset turnover ratio may suggest that there is room for further improvement in utilizing all assets to generate revenue effectively.