Roivant Sciences Ltd (ROIV)

Quick 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	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	—	—
Receivables	US$ in thousands	53,545	41,078	52,118	37,064	30,379	27,967	25,036	—	3,878	11,548	12,316	5,409
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
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

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,535,710K + $—K + $53,545K) ÷ $266,758K
= 24.70

The quick ratio of Roivant Sciences Ltd has exhibited fluctuating trends over the past twelve quarters, indicating varying levels of liquidity and ability to meet short-term obligations without relying on inventory sales.

The quick ratio experienced a significant increase from 6.32 in March 2023 to 27.53 in December 2023, suggesting a substantial improvement in the company's ability to cover its current liabilities with its most liquid assets. However, this ratio dropped to 5.50 in September 2023, reflecting a potential strain on the company's short-term liquidity.

The quick ratio continued to fluctuate in subsequent quarters, with values above 5 but below 10, indicating some level of liquidity risk. The highest quick ratio of 24.70 was recorded in March 2024, indicating an improvement in short-term liquidity compared to previous quarters.

Overall, the quick ratio of Roivant Sciences Ltd has shown variability, with the company exhibiting both strong and weak liquidity positions during the analyzed period. It would be crucial for stakeholders to monitor future trends in the quick ratio to assess the company's ability to meet its short-term obligations effectively.