Roivant Sciences Ltd (ROIV)
Solvency ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.16 | 1.21 | 2.06 | 1.56 | 1.50 |
Roivant Sciences Ltd consistently maintains strong solvency ratios as indicated by their Debt-to-assets, Debt-to-capital, and Debt-to-equity ratios all being at 0.00 across the years provided (March 31, 2021 to March 31, 2024). This suggests that the company has no debt relative to its assets, capital, and equity during this period, indicating a healthy financial position and low risk of financial distress.
However, it is important to note that the Financial leverage ratio has shown some fluctuations over the years, starting at 1.50 on March 31, 2021, increasing to 2.06 on March 31, 2023, and then decreasing to 1.21 on March 31, 2024. This ratio measures the proportion of the company's assets that are financed by debt, indicating how leveraged the company is. Even though the Financial leverage ratio increased in 2023, the overall trend is still stable and reasonable.
The absence of data for March 31, 2025, which is indicated by "—", makes it difficult to provide a complete analysis for that year. Nonetheless, based on the data available, Roivant Sciences Ltd appears to have maintained a solid solvency position with minimal debt in relation to its assets, capital, and equity over the years analyzed.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | — | 123.30 | -42.79 | -131.04 | -381.24 |
Roivant Sciences Ltd's interest coverage ratio has shown a varied trend over the past five years. As of March 31, 2021, the interest coverage ratio was at a concerning low of -381.24, indicating that the company's earnings were insufficient to cover its interest expenses. This suggests a significant financial risk and potential difficulties in meeting debt obligations.
In the subsequent years, there was some improvement in the interest coverage ratio, with the figure for March 31, 2022, improving to -131.04 and further to -42.79 as of March 31, 2023. While these ratios remain negative, the trend suggests some progress in the company's ability to generate earnings to cover interest expenses.
The most significant improvement in the interest coverage ratio was seen as of March 31, 2024, where it reached a positive value of 123.30. This indicates that the company's earnings were more than sufficient to cover its interest payments, reflecting a healthier financial position and reduced risk of default on debt obligations.
However, it is noteworthy that the data for March 31, 2025 is not available, which limits the ability to provide a comprehensive analysis of the most recent period. Overall, the trend in Roivant Sciences Ltd's interest coverage ratio demonstrates a mix of challenges and improvements in its ability to meet interest payments over the years, emphasizing the importance of monitoring financial performance and debt management practices.