Roivant Sciences Ltd (ROIV)

Financial leverage ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Total assets	US$ in thousands	5,436,940	7,222,480	2,389,600	2,585,130	2,689,690
Total stockholders’ equity	US$ in thousands	4,687,600	5,968,580	1,157,770	1,656,940	1,797,790
Financial leverage ratio		1.16	1.21	2.06	1.56	1.50

March 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,436,940K ÷ $4,687,600K
= 1.16

The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. In the case of Roivant Sciences Ltd, the trend of the financial leverage ratio over the past few years is as follows:

- As of March 31, 2021, the financial leverage ratio was 1.50, indicating that the company had $1.50 in debt for every $1 of equity. This level suggests a moderate reliance on debt.

- By March 31, 2022, the financial leverage ratio had increased to 1.56, signaling a slight uptick in the reliance on debt compared to the previous year.

- The financial leverage ratio then surged to 2.06 by March 31, 2023, indicating a significant increase in the company's debt relative to its equity. This sharp rise could be a cause for closer scrutiny as higher leverage ratios can indicate increased financial risk.

- However, by March 31, 2024, the financial leverage ratio dropped notably to 1.21, suggesting a decrease in the company's reliance on debt compared to the previous year. This reduction may have been a strategic move to lower financial risk.

- Finally, the data for March 31, 2025 shows a dash, indicating that the financial leverage ratio is not available for that period.

Overall, the trend in Roivant Sciences Ltd's financial leverage ratio shows fluctuations in the company's debt-to-equity structure over the evaluated period, ranging from moderate to high levels of leverage. It is essential for stakeholders to monitor these fluctuations to assess the company's financial risk and stability.