Roivant Sciences Ltd (ROIV)

Financial leverage 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
Total assets	US$ in thousands	7,222,480	7,312,680	2,065,540	2,136,650	2,389,600	2,202,960	2,215,530	2,600,400	2,585,130	2,799,380	3,102,910	2,454,700
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
Financial leverage ratio		1.21	1.20	2.18	2.35	2.06	2.31	1.91	1.88	1.56	1.50	1.52	1.42

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 displayed some fluctuations over the past few quarters, ranging from 1.20 to 2.35. The trend indicates varying degrees of financial leverage utilized by the company to finance its operations and growth initiatives. A higher financial leverage ratio suggests a higher level of debt financing relative to equity, which can magnify returns in favorable conditions but also increase financial risk during economic downturns. On the other hand, a lower financial leverage ratio implies a more conservative capital structure with a greater reliance on equity financing.

In the most recent quarter, the financial leverage ratio stood at 1.21, slightly higher than the previous quarter. This suggests a moderate level of leverage compared to historical levels. It is important for investors and stakeholders to closely monitor changes in the financial leverage ratio as it can impact the company's financial stability, profitability, and overall risk profile. Additionally, understanding the reasons behind fluctuations in this ratio will provide valuable insights into the company's financial health and management's strategic decisions regarding capital structure.