Roivant Sciences Ltd (ROIV)
Return on equity (ROE)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -171,981 | 4,348,930 | -1,009,030 | -845,262 | -809,234 |
| Total stockholders’ equity | US$ in thousands | 4,687,600 | 5,968,580 | 1,157,770 | 1,656,940 | 1,797,790 |
| ROE | -3.67% | 72.86% | -87.15% | -51.01% | -45.01% |
March 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-171,981K ÷ $4,687,600K
= -3.67%
Roivant Sciences Ltd's return on equity (ROE) has exhibited fluctuating trends over the past five years. The ROE was negative in the fiscal years ending on March 31, 2021, 2022, and 2023, indicating that the company was not generating positive returns for its shareholders relative to their equity investment during this period.
The significant decline in ROE from -45.01% in 2021 to -87.15% in 2023 suggests worsening profitability and operational efficiency issues that impacted shareholder returns negatively.
However, there was a notable turnaround in the fiscal year ending on March 31, 2024, with ROE surging to 72.86%. This positive ROE signifies that Roivant Sciences significantly improved its ability to generate profits from shareholders' equity investments, reflecting better profitability and operational performance.
The absence of ROE data for the fiscal year ending on March 31, 2025, makes it challenging to assess the company's current financial performance and its ability to deliver returns to shareholders.
In conclusion, Roivant Sciences Ltd's ROE performance has been volatile, characterized by periods of negative returns followed by a substantial improvement in profitability. It is crucial for the company to sustain positive ROE levels in the future to enhance shareholder value and demonstrate continued financial viability.
Peer comparison
Mar 31, 2025