Roivant Sciences Ltd (ROIV)

Return on total capital

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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	Mar 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-408,338	4,699,602	4,383,386	4,290,840	4,159,234	-1,119,347	-1,115,518	-1,079,355	-1,046,103	-1,140,748	-1,074,384	-1,478,047	-1,350,125	-1,625,673	-1,638,720	-1,110,832	-1,070,898	-612,565
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	4,687,600	5,189,470	5,580,040	5,435,310	5,968,580	6,089,760	948,534	910,730	1,157,770	955,520	1,160,600	1,384,110	2,038,940	2,247,260	2,038,020	1,723,120	1,797,790	—
Return on total capital		-8.71%	90.56%	78.55%	78.94%	69.69%	-18.38%	-117.60%	-118.52%	-90.35%	-119.39%	-92.57%	-106.79%	-66.22%	-72.34%	-80.41%	-64.47%	-59.57%	—

March 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-408,338K ÷ ($—K + $4,687,600K)
= -8.71%

The return on total capital for Roivant Sciences Ltd has exhibited significant fluctuation over the period from December 31, 2020, to March 31, 2025. It started with negative figures, indicating that the company was not effectively generating returns on the capital invested. However, there was a positive turnaround starting from the first quarter of 2024, with the return on total capital increasing steadily. By the end of December 31, 2024, the return on total capital reached a substantial level of 90.56%. This positive trend reversed in the first quarter of 2025, as the return on total capital dropped to -8.71%. It is important for investors and stakeholders to closely monitor the company's strategies and financial performance to understand the factors driving these fluctuations in return on total capital.