Roivant Sciences Ltd (ROIV)
Return on total capital
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,405,930 | -975,872 | -837,852 |
| Long-term debt | US$ in thousands | 204,371 | 180,700 | 210,025 |
| Total stockholders’ equity | US$ in thousands | 5,968,580 | 1,157,770 | 1,656,940 |
| Return on total capital | 71.37% | -72.91% | -44.88% |
March 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,405,930K ÷ ($204,371K + $5,968,580K)
= 71.37%
Return on total capital is a key financial metric that indicates the efficiency of a company in generating returns from its total capital employed. For Roivant Sciences Ltd, the return on total capital has shown significant improvement over the past three years. In fiscal year 2024, the company achieved an impressive return on total capital of 71.37%, indicating that for every dollar of total capital deployed, the company generated a return of $0.7137. This signifies a substantial improvement from the negative returns seen in fiscal years 2023 and 2022, where the company recorded -72.91% and -44.88% respectively.
The positive return on total capital for 2024 suggests that Roivant Sciences Ltd has efficiently utilized its total capital to generate profits, indicating potentially stronger financial performance and value creation for stakeholders. It is essential for the company to sustain this positive trend in order to drive long-term growth and profitability.
Peer comparison
Mar 31, 2024