Roivant Sciences Ltd (ROIV)

Cash conversion cycle

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Days of inventory on hand (DOH)	days	—	460.11	76.76	—	11,333.10
Days of sales outstanding (DSO)	days	—	242.21	224.22	44.44	212.17
Number of days of payables	days	9,492.00	694.72	1,051.79	1,407.85	3,646.45
Cash conversion cycle	days	-9,492.00	7.61	-750.81	-1,363.41	7,898.82

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – 9,492.00
= -9,492.00

Based on the provided data, Roivant Sciences Ltd's cash conversion cycle has shown significant fluctuations over the years.

As of March 31, 2021, the cash conversion cycle was 7,898.82 days, indicating that the company took a considerable amount of time to convert its investments in inventory and other resources into cash.

By March 31, 2022, the cash conversion cycle improved significantly to -1,363.41 days. A negative cash conversion cycle suggests that the company was able to generate cash from its operating cycle before paying its suppliers, which could be a positive sign of efficiency.

In the following year, by March 31, 2023, the cash conversion cycle further improved to -750.81 days, indicating continued efficiency in managing working capital.

By March 31, 2024, the cash conversion cycle reduced even further to 7.61 days, reflecting a more streamlined process of converting investments into cash.

Lastly, as of March 31, 2025, the cash conversion cycle reached 0.00 days, implying that the company was able to convert its investments into cash almost instantaneously.

Overall, Roivant Sciences Ltd has shown significant improvement in its cash conversion cycle over the years, moving from an inefficient cycle to a more streamlined and efficient process of managing working capital and converting investments into cash.