Roivant Sciences Ltd (ROIV)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 33.47 | 37.91 | 10.43 | 27.91 | 25.24 | 27.79 | 5.84 | 6.37 | 6.60 | 6.74 | 7.43 | 6.20 | 11.64 | 14.23 | 8.42 | 9.84 | 9.99 | — |
| Quick ratio | 32.71 | 36.38 | 9.74 | 26.75 | 24.76 | 27.48 | 5.47 | 5.97 | 6.35 | 6.45 | 7.05 | 5.90 | 11.29 | 13.92 | 8.27 | 9.57 | 9.45 | — |
| Cash ratio | 32.71 | 36.38 | 9.70 | 26.36 | 24.52 | 27.26 | 5.32 | 5.81 | 6.21 | 6.33 | 6.93 | 5.90 | 11.25 | 13.85 | 8.23 | 9.55 | 9.39 | — |
Based on the provided data, Roivant Sciences Ltd's liquidity ratios have fluctuated over the examined periods. The current ratio, which measures the company's ability to cover its short-term liabilities with current assets, has shown a general decreasing trend but experienced a significant spike at the end of December 2023 and December 2024, reaching very high values of 27.79 and 37.91, respectively.
The quick ratio also demonstrates a similar pattern, indicating the company's ability to meet its immediate short-term obligations without relying on the sale of inventory. Like the current ratio, the quick ratio peaked at the end of December 2023 and December 2024 before declining slightly in March 2025.
Lastly, the cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents, shows a comparable trend to the current and quick ratios. The cash ratio surged in December 2023 and December 2024, reflecting strong cash positions during those periods.
Overall, despite some fluctuations, the liquidity ratios of Roivant Sciences Ltd exhibit periods of strength in terms of its ability to meet short-term obligations, especially in the highlighted periods at the end of 2023 and 2024. It is essential for the company to continue monitoring and managing its liquidity position effectively to ensure ongoing financial stability and the ability to withstand unforeseen challenges.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Roivant Sciences Ltd has fluctuated significantly over the years based on the provided data. A negative cash conversion cycle typically indicates that the company is efficiently managing its working capital, allowing it to convert inventory into cash quickly.
From December 2020 to June 2022, the cash conversion cycle fluctuated dramatically, indicating potential challenges in managing inventory, receivables, and payables efficiently. The company experienced extremely long cash conversion cycles, suggesting operational inefficiencies during these periods.
However, from September 2022 onwards, Roivant Sciences Ltd managed to significantly improve its cash conversion cycle, turning negative. This indicates that the company has streamlined its processes, leading to a faster conversion of resources into cash. Negative cash conversion cycles are generally seen as positive, as they imply that the company is generating cash from its operations before having to pay suppliers or other obligations.
Overall, the trend in Roivant Sciences Ltd's cash conversion cycle shows a transition from inefficient working capital management to more effective cash flow operations, which is a positive sign for the company's financial health and operational efficiency.