Roivant Sciences Ltd (ROIV)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	6,535,710	6,700,000	1,408,230	1,434,090	1,676,810	1,527,440	1,599,020	1,942,220	2,060,400	2,214,280	2,500,000	1,996,730
Short-term investments	US$ in thousands	—	—	—	—	15,302	13,600	—	—	13,634	11,852	—	—
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
Cash ratio		24.50	27.36	5.30	5.85	6.21	6.31	6.93	5.90	11.25	13.85	8.24	9.55

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,535,710K + $—K) ÷ $266,758K
= 24.50

The cash ratio of Roivant Sciences Ltd has shown fluctuations over the past twelve quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

In the most recent quarter ending March 31, 2024, Roivant Sciences Ltd reported a cash ratio of 24.50, which represents a significant increase compared to the previous quarter's ratio of 27.36 as of December 31, 2023. This suggests that the company had a higher level of cash and cash equivalents relative to its short-term liabilities in the most recent period.

Looking at the trend over the past year, the cash ratio fluctuated between 5.30 and 27.36. The lowest ratio was observed in the quarter ending September 30, 2023, while the highest ratio was recorded in the quarter ending December 31, 2023. The fluctuations in the cash ratio may indicate varying levels of liquidity and cash management efficiency within the company during this period.

Overall, a cash ratio above 1 is generally considered favorable as it indicates that a company has enough cash to cover its short-term liabilities. Roivant Sciences Ltd's recent cash ratio of 24.50 is notably high, suggesting a strong liquidity position as of March 31, 2024. It would be important for stakeholders to monitor future trends in the cash ratio to assess the company's ongoing ability to meet its short-term obligations effectively.