Roivant Sciences Ltd (ROIV)

Working capital 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
Revenue (ttm)	US$ in thousands	90,017	87,063	67,973	44,317	33,312	22,259	36,493	44,730	48,245
Total current assets	US$ in thousands	6,731,830	6,806,730	1,551,630	1,561,160	1,798,590	1,646,230	1,714,860	2,039,440	2,146,520	2,287,530	2,555,750	2,057,610
Total current liabilities	US$ in thousands	266,758	244,899	265,546	245,004	272,448	244,255	230,744	328,915	184,367	160,713	303,444	209,158
Working capital turnover		0.01	0.01	0.05	0.03	0.02	0.02	0.02	0.03	0.02

March 31, 2024 calculation

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

The working capital turnover ratio of Roivant Sciences Ltd has shown fluctuations over the past several quarters. The ratio increased from 0.01 in December 2021 to 0.05 in September 2023, signaling an improvement in the company's efficiency in using its working capital to generate revenue. However, the ratio decreased to 0.01 in both March 2024 and December 2023, indicating a decline in this efficiency metric.

Overall, the working capital turnover ratio has been relatively low, ranging between 0.01 and 0.05 over the analyzed periods. This suggests that Roivant Sciences Ltd may not be efficiently utilizing its working capital to generate sales during certain quarters. It would be prudent for the company to closely monitor and manage its working capital in order to improve this ratio and enhance overall operational efficiency.