Roivant Sciences Ltd (ROIV)

Working capital turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Revenue	US$ in thousands	90,017	33,312	48,245
Total current assets	US$ in thousands	6,731,830	1,798,590	2,146,520
Total current liabilities	US$ in thousands	266,758	272,448	184,367
Working capital turnover		0.01	0.02	0.02

March 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $90,017K ÷ ($6,731,830K – $266,758K)
= 0.01

The working capital turnover ratio for Roivant Sciences Ltd has experienced a decline over the past three years, decreasing from 0.02 in both 2022 and 2023 to 0.01 in 2024. This ratio indicates the efficiency of the company in generating revenue from its working capital. A lower turnover ratio may suggest that the company is not effectively utilizing its working capital to generate sales.

A working capital turnover ratio of 0.01 in 2024 means that for every dollar of working capital, Roivant Sciences Ltd generated $0.01 of revenue during the year. This could be a cause for concern as it indicates a potential decrease in the company's operational efficiency and its ability to efficiently use its current assets to generate sales.

It would be advisable for Roivant Sciences Ltd to further analyze the reasons behind the decline in the working capital turnover ratio and take appropriate measures to improve efficiency in managing its working capital to enhance overall financial performance.