Roivant Sciences Ltd (ROIV)
Liquidity ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 24.70 | 27.53 | 5.50 | 6.00 | 6.32 | 6.42 | 7.04 | 5.90 | 11.27 | 13.92 | 8.28 | 9.57 |
| 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 |
Based on the liquidity ratios of Roivant Sciences Ltd, we can observe the following trends:
1. Current Ratio:
- Roivant Sciences Ltd's current ratio has been consistently high, ranging from 25.24 to 27.79 over the past nine quarters. This indicates that the company has more than enough current assets to cover its current liabilities. A higher current ratio suggests a better ability to meet short-term obligations.
2. Quick Ratio:
- The quick ratio follows a similar trend to the current ratio, remaining high and stable at around 24.70 to 27.53. The quick ratio excludes inventory from current assets, providing a more stringent measure of liquidity. Roivant Sciences Ltd appears to have a strong ability to meet its short-term obligations without relying on inventory.
3. Cash Ratio:
- The cash ratio of Roivant Sciences Ltd has also displayed a consistently high level, ranging from 24.50 to 27.36. This ratio measures the company's ability to cover its current liabilities with cash and cash equivalents alone. The high cash ratio suggests that Roivant Sciences Ltd holds a significant amount of liquid assets relative to its current liabilities.
Overall, the liquidity ratios of Roivant Sciences Ltd reflect a strong financial position with ample liquidity to meet its short-term obligations. The company's ability to maintain high current, quick, and cash ratios indicates a sound financial health and efficient management of its working capital.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 207.57 | 155.21 | 256.58 | 277.77 | 311.56 | 465.66 | 271.83 | -69.98 | 13.05 |
The cash conversion cycle of Roivant Sciences Ltd has shown fluctuations over the past several quarters, indicating changes in the company's efficiency in managing its working capital. The cycle measures the average number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In the most recent quarter, as of March 31, 2024, the cash conversion cycle stood at 207.57 days, indicating an increase compared to the previous quarter. This suggests that Roivant Sciences Ltd took longer to convert its investments into cash during this period.
Looking back further, the company experienced a significant improvement in its cash conversion cycle from negative 69.98 days in June 2022 to positive numbers in subsequent quarters. This change suggests that Roivant Sciences Ltd has become more efficient in managing its working capital and converting investments into cash.
Overall, monitoring the cash conversion cycle can provide valuable insights into Roivant Sciences Ltd's operational efficiency and effectiveness in managing its cash flows and working capital.