Roivant Sciences Ltd (ROIV)

Receivables turnover is a financial ratio that measures how efficiently a company is able to collect cash from its credit sales. A higher receivables turnover ratio indicates that a company is more effectively managing its accounts receivable.

Analyzing Roivant Sciences Ltd's receivables turnover over the past three years shows a significant fluctuation in performance. The receivables turnover ratio was 12.44 in 2022, reflecting a rapid collection of receivables that year. However, in 2023, the ratio dropped to 1.10, suggesting a slowdown in receivables collection efficiency. In the most recent year, 2024, the receivables turnover increased to 1.68, indicating a moderate improvement in the management of accounts receivable compared to the previous year.

The sharp decrease in the receivables turnover ratio from 2022 to 2023 may raise concerns about the company's credit policies, collection procedures, or customer payment behaviors during that period. The rebound in 2024 is a positive sign that the company may have implemented measures to address the decline in receivables turnover.

It would be beneficial for stakeholders of Roivant Sciences Ltd to further investigate the factors contributing to the varying receivables turnover ratios to ensure efficient cash flow management and sustainability in the long term.

Peer comparison

Mar 31, 2024