Roivant Sciences Ltd (ROIV)

Debt-to-capital ratio

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
Long-term debt US$ in thousands 204,371 194,560 188,911 187,140 180,700 183,510 188,680 200,700 210,025
Total stockholders’ equity US$ in thousands 5,968,580 6,089,760 948,534 910,730 1,157,770 955,520 1,160,600 1,384,110 1,656,940
Debt-to-capital ratio 0.03 0.03 0.17 0.17 0.14 0.16 0.14 0.13 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 remained relatively stable over the past several quarters, ranging between 0.03 and 0.17. This ratio measures the proportion of a company's capital that is financed by debt, with a higher ratio indicating a higher level of debt relative to the total capital structure.

In the most recent quarter, as of March 31, 2024, the debt-to-capital ratio was 0.03, indicating that only 3% of the company's capital was financed by debt, while the remaining 97% was funded by equity. This suggests that Roivant Sciences Ltd has a conservative debt structure and relies more on equity for its capital needs.

Looking back at the historical trend, the company experienced a slight increase in the debt-to-capital ratio in the third and fourth quarters of 2023, peaking at 0.17. However, it subsequently decreased to 0.14 and 0.13 in the following quarters, indicating a reduction in the reliance on debt for capital financing.

Overall, the consistent and relatively low debt-to-capital ratio of Roivant Sciences Ltd reflects a prudent financial strategy that balances debt and equity financing effectively.