Roivant Sciences Ltd (ROIV)

Current ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Total current assets	US$ in thousands	5,000,060	6,731,830	1,798,590	2,146,520	2,187,000
Total current liabilities	US$ in thousands	149,411	266,758	272,448	184,367	218,961
Current ratio		33.47	25.24	6.60	11.64	9.99

March 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,000,060K ÷ $149,411K
= 33.47

Based on the data provided, the current ratio of Roivant Sciences Ltd has shown fluctuations over the five-year period. The current ratio is an important liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.

- In March 31, 2021, the current ratio was 9.99, indicating that the company had almost 10 times more current assets than current liabilities, suggesting a strong liquidity position.
- By March 31, 2022, the current ratio improved to 11.64, reflecting further enhancement in liquidity compared to the previous year.
- However, there was a significant decrease in the current ratio by March 31, 2023, where it dropped to 6.60, which may raise concerns about the company's ability to meet its short-term obligations.
- The company experienced a sharp increase in liquidity by March 31, 2024, with a current ratio of 25.24, suggesting a substantial improvement in its ability to cover short-term liabilities.
- Unfortunately, the data for March 31, 2025 is not available (marked as "—"), making it challenging to assess the most recent liquidity position of the company based on the current ratio alone.

In conclusion, the current ratio of Roivant Sciences Ltd has exhibited fluctuations over the years, with both strengths and weaknesses in its liquidity position. It is important for stakeholders to monitor these changes to assess the company's ability to meet its short-term obligations effectively.