Roivant Sciences Ltd (ROIV)

Current 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
Total current assets	US$ in thousands	6,731,830	6,806,730	1,551,630	1,561,160	1,798,590	1,646,230	1,714,860	2,039,440	2,146,520	2,287,530	2,555,750	2,057,610
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
Current ratio		25.24	27.79	5.84	6.37	6.60	6.74	7.43	6.20	11.64	14.23	8.42	9.84

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $6,731,830K ÷ $266,758K
= 25.24

The current ratio of Roivant Sciences Ltd has displayed considerable fluctuation over the past several quarters, ranging from as low as 5.84 to as high as 27.79.

The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally seen as a positive sign of financial health.

In the most recent quarter, as of March 31, 2024, the current ratio stands at 25.24, indicating a substantial increase compared to the ratio of 6.60 in the same period of the previous year. This suggests that Roivant Sciences Ltd has significantly strengthened its ability to meet its short-term obligations with its current assets.

It is important to note the significant variability in the current ratio from quarter to quarter, indicating potential fluctuations in the company's liquidity position. Management should closely monitor these fluctuations to ensure that the company maintains a healthy liquidity position and can meet its short-term financial obligations effectively.