Roivant Sciences Ltd (ROIV)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total assets	US$ in thousands	5,436,940	5,792,340	6,206,030	6,496,450	7,222,480	7,312,680	2,065,540	2,136,650	2,389,600	2,202,960	2,215,530	2,600,400	2,585,130	2,799,380	3,102,910	2,454,700	2,589,690	—
Debt-to-assets ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	—

March 31, 2025 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $5,436,940K
= 0.00

The debt-to-assets ratio measures the proportion of a company's assets that are financed through debt. For Roivant Sciences Ltd, the trend of the debt-to-assets ratio indicates that the company has been maintaining a conservative financial structure with no debt recorded on its balance sheet since at least December 31, 2020.

A debt-to-assets ratio of 0.00 as reported for all the periods up to March 31, 2025, suggests that Roivant Sciences Ltd has not utilized debt as a source of financing. This could indicate that the company relies more on equity financing or internal funds to support its operations and growth initiatives.

While a zero debt-to-assets ratio can be seen as a positive indicator in terms of financial stability and lower financial risk, it's essential to consider that the company may be missing out on potential tax benefits associated with debt financing. Additionally, a low debt-to-assets ratio may also imply limited leverage for the company to take advantage of potential investment opportunities.

In conclusion, Roivant Sciences Ltd's consistent zero debt-to-assets ratio reflects a conservative approach to financing and suggests a lower level of financial risk in its operations.