Roivant Sciences Ltd (ROIV)

Debt-to-equity 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-equity ratio		0.03	0.16	0.13

March 31, 2024 calculation

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

The debt-to-equity ratio of Roivant Sciences Ltd has been fluctuating over the past three years. As of March 31, 2024, the company's debt-to-equity ratio stands at 0.03, indicating a low level of debt relative to equity. This represents a significant decrease compared to the ratios of 0.16 in 2023 and 0.13 in 2022.

The sharp decline in the debt-to-equity ratio suggests that Roivant Sciences Ltd has been effectively reducing its debt levels or increasing its equity position. A lower debt-to-equity ratio generally signifies lower financial risk for the company, as it indicates a greater proportion of financing is derived from equity rather than debt.

The improvement in the debt-to-equity ratio could be indicative of a healthier financial position for Roivant Sciences Ltd, potentially leading to increased investor confidence and better credit ratings. It also suggests that the company may have better access to capital for future growth opportunities or operational needs.

However, it is essential to consider other financial metrics and factors alongside the debt-to-equity ratio to gain a comprehensive understanding of Roivant Sciences Ltd's overall financial health and performance.