Roivant Sciences Ltd (ROIV)
Cash conversion cycle
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 809.77 | 826.90 | 93.14 | 71.07 | 60.32 | 43.67 | 1,544.48 | 3,761.02 | — | — | 2,188.29 | 1,929.94 | 6,641.08 | — | — |
| Days of sales outstanding (DSO) | days | — | 2.54 | 65.88 | 190.94 | 184.81 | 161.78 | 141.23 | 185.39 | 224.22 | 249.28 | 198.13 | — | 44.44 | 68.86 | 105.48 | 65.91 | 212.17 | — |
| Number of days of payables | days | 1,331.57 | 808.79 | 649.99 | 1,267.76 | 826.32 | 626.16 | 639.34 | 714.37 | 598.34 | 1,238.14 | 2,093.71 | 5,917.18 | 1,407.85 | 989.50 | 3,399.24 | 2,092.44 | 3,646.45 | — |
| Cash conversion cycle | days | -1,331.57 | -806.25 | -584.11 | -267.05 | 185.40 | -371.23 | -427.03 | -468.66 | -330.46 | 555.62 | 1,865.44 | -5,917.18 | -1,363.41 | 1,267.66 | -1,363.82 | 4,614.54 | -3,434.28 | 0.00 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – 1,331.57
= -1,331.57
The cash conversion cycle of Roivant Sciences Ltd has displayed significant fluctuations over the period from December 31, 2020, to March 31, 2025. A negative cash conversion cycle implies that the company is able to receive payment from customers before needing to pay its suppliers, indicating efficient management of working capital.
During the period, the company experienced cycles ranging from extremely positive to negative days, indicating varying efficiency levels in managing its cash flows, receivables, and payables. The negative cycles suggest that the company is adept at quickly converting its investments in inventory into cash by selling products and receiving payments from customers promptly.
However, the cycles have been erratic, with sudden changes from positive to negative days, which may indicate inconsistencies in the company's operations or strategy. Investors and stakeholders may need to closely monitor these fluctuations to understand the underlying reasons and assess the company's ability to maintain operational efficiency and financial stability over the long term.
Peer comparison
Mar 31, 2025