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	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021
Long-term debt	US$ in thousands	204,371	194,560	188,911	187,140	180,700	183,510	188,680	200,700	210,025	204,042	199,869	186,350
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	1,865,720	2,038,020	1,723,120
Debt-to-capital ratio		0.03	0.03	0.17	0.17	0.14	0.16	0.14	0.13	0.11	0.10	0.09	0.10

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.