Roivant Sciences Ltd (ROIV)
Quick ratio
| 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 | US$ in thousands | 2,715,410 | 1,990,680 | 1,969,910 | 5,678,510 | 6,535,710 | 6,670,810 | 1,408,230 | 1,434,090 | 1,676,810 | 1,531,400 | 1,599,020 | 1,942,220 | 2,060,400 | 2,214,280 | 2,497,330 | 1,996,730 | 2,055,040 | — |
| Short-term investments | US$ in thousands | 2,171,480 | 3,155,820 | 3,428,020 | -9,377 | 5,367 | 5,165 | 5,474 | -10,291 | 15,302 | 13,600 | — | — | 13,634 | 11,852 | — | — | — | — |
| Receivables | US$ in thousands | — | 678 | 22,684 | 82,813 | 63,188 | 54,624 | 39,914 | 39,914 | 37,644 | 29,454 | 27,367 | — | 6,732 | 11,548 | 12,316 | 5,409 | 13,832 | — |
| Total current liabilities | US$ in thousands | 149,411 | 141,484 | 556,249 | 215,045 | 266,758 | 244,899 | 265,546 | 245,004 | 272,448 | 244,255 | 230,744 | 328,915 | 184,367 | 160,713 | 303,444 | 209,158 | 218,961 | — |
| 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 | — |
March 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,715,410K
+ $2,171,480K
+ $—K)
÷ $149,411K
= 32.71
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher generally indicates that a company can cover its current liabilities without relying on the sale of inventory.
Analyzing the quick ratio of Roivant Sciences Ltd based on the provided data, we observe fluctuations over the quarters. The quick ratio was not available for December 31, 2020, but it started to be reported as 9.45 and 9.57 for March 31, and June 30, 2021, respectively. This exceptionally high ratio suggests a strong ability to meet short-term obligations.
Throughout the following quarters until December 31, 2023, the quick ratio decreased gradually but remained at relatively healthy levels, hovering between 5 to 27.48. However, there was a significant surge reported on December 31, 2023, where the quick ratio spiked to 27.48, indicating a substantial increase in the company's ability to cover short-term obligations.
From March 31, 2024, to December 31, 2024, the quick ratio decreased again, fluctuating between 24.76 to 36.38, with the ratio peaking at 36.38 on December 31, 2024, indicating a further improvement in the company's liquidity position.
In summary, Roivant Sciences Ltd has displayed varying levels of liquidity over the quarters, with peaks and troughs in the quick ratio. The company has shown the ability to cover its short-term obligations comfortably, with occasional fluctuations in liquidity levels, which could be indicative of changes in the company's working capital management or investment in highly liquid assets.
Peer comparison
Mar 31, 2025