Roivant Sciences Ltd (ROIV)

Cash ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cash and cash equivalents	US$ in thousands	2,715,410	6,535,710	1,676,810	2,060,400	2,055,040
Short-term investments	US$ in thousands	2,171,480	5,367	5,011	13,634	77,701
Total current liabilities	US$ in thousands	149,411	266,758	272,448	184,367	218,961
Cash ratio		32.71	24.52	6.17	11.25	9.74

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,715,410K + $2,171,480K) ÷ $149,411K
= 32.71

The cash ratio of Roivant Sciences Ltd has shown fluctuations over the past five years.

- As of March 31, 2021, the cash ratio was 9.74, indicating that the company had $9.74 in cash and cash equivalents for every $1 of current liabilities.
- By March 31, 2022, the cash ratio had increased to 11.25, suggesting an improvement in the company's liquidity position.
- However, there was a decline in the cash ratio to 6.17 as of March 31, 2023, which may raise concerns about the company's ability to cover its short-term obligations with its cash reserves.
- The cash ratio experienced a significant surge to 24.52 by March 31, 2024, pointing towards a substantial increase in the company's ability to meet its short-term liabilities with cash on hand.
- It is notable that there is no data available for the cash ratio as of March 31, 2025, which prevents further analysis for that period.

Overall, the trend in Roivant Sciences Ltd's cash ratio indicates variability in the company's liquidity position over the years, with notable improvements and declines observed.