Roivant Sciences Ltd (ROIV)

Operating return on assets (Operating ROA)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Operating income	US$ in thousands	4,242,020	-1,175,320	-1,351,640
Total assets	US$ in thousands	7,222,480	2,389,600	2,585,130
Operating ROA		58.73%	-49.18%	-52.29%

March 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $4,242,020K ÷ $7,222,480K
= 58.73%

Roivant Sciences Ltd's operating return on assets (operating ROA) has shown significant improvement over the past three years. In the fiscal year ending March 31, 2024, the company achieved an operating ROA of 58.73%, indicating that the company generated $0.5873 in operating income for every dollar of assets employed in its operations. This is a substantial improvement compared to the negative operating ROA recorded in the previous two fiscal years (-49.18% in 2023 and -52.29% in 2022).

The positive operating ROA in 2024 suggests that Roivant Sciences Ltd has been able to efficiently utilize its assets to generate operating income, signaling a potential turnaround in the company's operational performance. It is important to note, however, that the significant fluctuations in operating ROA over the past three years may indicate underlying volatility or changes in the company's operating environment. Further analysis of the company's financial statements and operational strategies is recommended to gain a deeper understanding of the drivers behind these fluctuations.