Roivant Sciences Ltd (ROIV)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	5,968,580	6,089,760	948,534	910,730	1,157,770	955,520	1,160,600	1,384,110	1,656,940	1,865,720	2,038,020	1,723,120
ROE		72.86%	73.34%	-103.50%	-106.40%	-87.15%	-130.35%	-101.50%	-79.10%	-51.01%

March 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $4,348,922K ÷ $5,968,580K
= 72.86%

Roivant Sciences Ltd's return on equity (ROE) has exhibited fluctuating performance over the past several quarters.

In March 2024, the ROE stood at a strong 72.86%, indicating that the company generated a high level of net income relative to its shareholder equity. This suggests efficient utilization of equity to generate profits for shareholders.

The ROE slightly decreased from December 2023 to March 2024, showing a minor dip in profitability. However, the ROE remained relatively high and stable during this period.

It is important to note the significant negative ROE figures in the prior quarters, particularly in September 2023 and June 2023. The negative ROE values indicate that the company incurred losses exceeding its equity during those periods, reflecting financial challenges or inefficiencies in managing resources.

Overall, the recent positive trend in ROE is a positive sign for Roivant Sciences Ltd, demonstrating improved profitability and potential value creation for its shareholders. However, the company should continue to monitor its financial performance and address any underlying issues contributing to negative ROE figures in previous quarters.