Roivant Sciences Ltd (ROIV)

Financial leverage ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022
Total assets	US$ in thousands	7,222,480	2,389,600	2,585,130
Total stockholders’ equity	US$ in thousands	5,968,580	1,157,770	1,656,940
Financial leverage ratio		1.21	2.06	1.56

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,222,480K ÷ $5,968,580K
= 1.21

The financial leverage ratio of Roivant Sciences Ltd has decreased from 2.06 in 2023 to 1.21 in 2024, indicating a significant improvement in the company's leverage position. A lower financial leverage ratio suggests that the company relies less on debt funding relative to equity, which can reduce financial risk and enhance financial stability. In 2024, the company's financial leverage ratio of 1.21 indicates that for each dollar of equity, the company has $1.21 in total assets, reflecting a conservative capital structure. This improvement in the financial leverage ratio may be attributed to debt repayment, increased equity financing, or a combination of both. Overall, the decreasing trend in the financial leverage ratio implies a healthier financial position for Roivant Sciences Ltd compared to the previous year.