Roivant Sciences Ltd (ROIV)

Return on assets (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
Net income (ttm)	US$ in thousands	4,348,922	4,466,420	-981,774	-969,037	-1,009,030	-1,245,475	-1,177,997	-1,094,888	-845,262
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
ROA		60.21%	61.08%	-47.53%	-45.35%	-42.23%	-56.54%	-53.17%	-42.10%	-32.70%

March 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $4,348,922K ÷ $7,222,480K
= 60.21%

Roivant Sciences Ltd's return on assets (ROA) has shown varying trends over the recent quarters. In the most recent quarter ending March 31, 2024, the ROA stood at 60.21%, indicating that the company generated $0.6021 in net income for every dollar of assets it holds. This represents a positive trend compared to the previous quarter's ROA of 61.08%.

However, looking back at the data, there were significant fluctuations in ROA in the prior quarters, with negative values recorded in multiple periods. The ROA was notably low in the quarter ending September 30, 2023, at -47.53%, and continued to be negative until the end of the year 2022. This suggests that during these quarters, the company's net income was insufficient to cover the assets employed in generating revenue.

Overall, Roivant Sciences Ltd's recent improvement in ROA indicates a better utilization of its assets to generate profits, which can be a positive signal for investors and stakeholders. It will be essential to monitor future ROA figures to assess the company's ongoing financial performance and efficiency in asset utilization.