Roivant Sciences Ltd (ROIV)

Debt-to-assets ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Long-term debt	US$ in thousands	204,371	180,700	210,025
Total assets	US$ in thousands	7,222,480	2,389,600	2,585,130
Debt-to-assets ratio		0.03	0.08	0.08

March 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $204,371K ÷ $7,222,480K
= 0.03

The debt-to-assets ratio of Roivant Sciences Ltd has shown a declining trend over the past three years. As of March 31, 2024, the ratio stands at 0.03, indicating that the company's debt levels relative to its total assets are relatively low. This suggests that Roivant Sciences Ltd has a strong ability to cover its debt obligations with its existing assets. Comparing this to the ratios of 0.08 in both March 31, 2023 and 2022, it is evident that the company has improved its debt management and potentially reduced its reliance on debt financing over time. This could be viewed positively by investors and creditors as lower debt levels generally signify lower financial risk and greater financial stability within the company.