Roivant Sciences Ltd (ROIV)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	-1,021,245	-1,002,280	4,332,981	4,951,148	4,794,921	4,826,755	-514,453	-1,071,673	-1,077,569	-1,108,689	-1,074,384	-1,478,047	-1,350,125	-1,625,673	-1,638,720	-1,110,832	-1,070,898	-530,064
Total assets	US$ in thousands	5,436,940	5,792,340	6,206,030	6,496,450	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	2,589,690	—
Operating ROA		-18.78%	-17.30%	69.82%	76.21%	66.39%	66.01%	-24.91%	-50.16%	-45.09%	-50.33%	-48.49%	-56.84%	-52.23%	-58.07%	-52.81%	-45.25%	-41.35%	—

March 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-1,021,245K ÷ $5,436,940K
= -18.78%

Roivant Sciences Ltd's operating return on assets (ROA) has shown a fluctuating trend over the specified period. The company experienced negative operating ROA figures from March 31, 2021, to June 30, 2023, with percentages ranging from -41.35% to -50.16%. These negative values indicate that the company's operating income generated from its assets was insufficient to cover its operating expenses during this period.

However, there was a significant improvement in the company's performance starting from the end of December 31, 2023, to June 30, 2024, with operating ROA figures increasing to positive percentages, reaching as high as 76.21%. This indicates that the company's operating income started to outperform its operating expenses, leading to improved profitability and efficiency in asset utilization.

The positive trend was interrupted by a decline in the operating ROA to -17.30% by the end of December 31, 2024, and further down to -18.78% by March 31, 2025. These negative percentages suggest that the company faced challenges in generating sufficient operating income relative to its assets during these periods.

Overall, Roivant Sciences Ltd's operating ROA trend reflects a mix of profitability and efficiency challenges, with periods of improvement followed by setbacks. Monitoring this metric closely can help assess the company's operational performance and its ability to generate returns from its assets.