Roivant Sciences Ltd (ROIV)

Debt-to-capital ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
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
Debt-to-capital ratio		0.03	0.14	0.11

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $204,371K ÷ ($204,371K + $5,968,580K)
= 0.03

The debt-to-capital ratio of Roivant Sciences Ltd has shown a decreasing trend over the past three years. As of March 31, 2024, the ratio stands at 0.03, indicating that only 3% of the company's capital is funded by debt. This represents a significant improvement from the previous year when the ratio was 0.14, signifying that 14% of capital was financed by debt. Additionally, compared to two years ago when the ratio was 0.11, there has been a notable decrease in the reliance on debt to fund operations. This suggests that Roivant Sciences Ltd has been able to reduce its debt levels and strengthen its financial position by relying more on equity rather than debt to support its capital structure. Overall, the decreasing trend in the debt-to-capital ratio reflects a positive financial management strategy and indicates a lower risk of financial distress for the company.