Roivant Sciences Ltd (ROIV)

Return on assets (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
Net income (ttm)	US$ in thousands	-171,981	-116,621	4,810,178	4,736,035	4,348,922	4,466,420	-981,774	-993,368	-1,055,336	-1,313,032	-1,245,554	-1,138,114	-866,513	-1,084,764	-1,061,257	-888,174	-809,234	-299,670
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	—
ROA		-3.16%	-2.01%	77.51%	72.90%	60.21%	61.08%	-47.53%	-46.49%	-44.16%	-59.60%	-56.22%	-43.77%	-33.52%	-38.75%	-34.20%	-36.18%	-31.25%	—

March 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $-171,981K ÷ $5,436,940K
= -3.16%

Roivant Sciences Ltd's return on assets (ROA) has shown significant fluctuations over the period from December 31, 2020, to March 31, 2025. The ROA started at an unreported value in December 2020, followed by a sharp decline to -31.25% as of March 31, 2021. This negative trend continued, reaching its lowest point at -59.60% by December 31, 2022.

However, there was a notable turnaround in the company's performance starting from the first quarter of 2023. The ROA saw a positive upturn, reaching 61.08% by December 31, 2023, and further improving to 77.51% by September 30, 2024. This period marked a significant recovery in the company's asset utilization efficiency.

Despite the positive momentum, the ROA decreased slightly to -2.01% by the end of December 2024 and continued to decline to -3.16% as of March 31, 2025. This recent decline may indicate potential challenges in generating profits relative to the assets employed in the business.

Overall, the analysis of Roivant Sciences Ltd's ROA highlights both periods of strong improvement and concerning declines in asset utilization efficiency. It suggests the company's varying ability to generate profits from its assets, indicating the need for a closer examination of its operational performance and financial management strategies.