Roivant Sciences Ltd (ROIV)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	4,242,013	4,273,847	-1,165,110	-1,169,422	-1,175,318	-1,207,955	-1,075,901	-1,479,564	-1,351,642
Total assets	US$ in thousands	7,222,480	7,312,680	2,065,540	2,136,650	2,389,600	2,202,960	2,215,530	2,600,400	2,585,130	2,799,380	3,102,910	2,454,700
Operating ROA		58.73%	58.44%	-56.41%	-54.73%	-49.18%	-54.83%	-48.56%	-56.90%	-52.29%

March 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $4,242,013K ÷ $7,222,480K
= 58.73%

Roivant Sciences Ltd's operating return on assets (operating ROA) has exhibited significant variability in recent quarters. The operating ROA ranged from negative figures to positive figures, indicating fluctuations in the company's operational efficiency in generating profits from its assets.

From December 2021 to March 2022, the company experienced a consistent decline in operating ROA, with values falling from -52.29% to -54.83%. This negative trend suggests potential challenges in effectively utilizing its assets to generate operating income during this period.

However, in the first quarter of 2023, there was a notable improvement in operating ROA, which increased to -49.18%. Subsequently, in the following quarters, the operating ROA continued to increase, reaching 58.73% in March 2024. This turnaround indicates a positive shift in the company's operational efficiency and profitability in utilizing its assets effectively.

Overall, the fluctuating nature of Roivant Sciences Ltd's operating ROA highlights the importance of closely monitoring the company's asset utilization and operational performance to ensure sustained profitability and efficiency in the future.