Roivant Sciences Ltd (ROIV)

Return on equity (ROE)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Net income	US$ in thousands	4,348,930	-1,009,030	-845,262
Total stockholders’ equity	US$ in thousands	5,968,580	1,157,770	1,656,940
ROE		72.86%	-87.15%	-51.01%

March 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $4,348,930K ÷ $5,968,580K
= 72.86%

Roivant Sciences Ltd's return on equity (ROE) has exhibited significant fluctuations over the past three years. In the fiscal year ending March 31, 2024, the company achieved a robust ROE of 72.86%, indicating that for every dollar of shareholders' equity, the company generated a return of approximately $0.73. This represents a substantial improvement compared to the negative ROE of -87.15% in the previous year, highlighting a strong turnaround in the company's profitability and efficiency in asset utilization.

However, looking back to the fiscal year ending March 31, 2022, Roivant Sciences Ltd experienced a negative ROE of -51.01%, suggesting that the company was not effectively utilizing its shareholders' equity to generate profits during that period. This negative ROE may raise concerns among investors regarding the company's ability to generate sustainable returns on their investments.

Overall, the significant fluctuations in Roivant Sciences Ltd's ROE over the past three years indicate varying levels of profitability and efficiency in capital utilization. Further analysis and monitoring of the company's financial performance and operational strategies are recommended to assess the sustainability of its return on equity.