Roivant Sciences Ltd (ROIV)

Financial leverage ratio

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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	Mar 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	5,436,940	5,792,340	6,206,030	6,496,450	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	2,589,690	—
Total stockholders’ equity	US$ in thousands	4,687,600	5,189,470	5,580,040	5,435,310	5,968,580	6,089,760	948,534	910,730	1,157,770	955,520	1,160,600	1,384,110	2,038,940	2,247,260	2,038,020	1,723,120	1,797,790	—
Financial leverage ratio		1.16	1.12	1.11	1.20	1.21	1.20	2.18	2.35	2.06	2.31	1.91	1.88	1.27	1.25	1.52	1.42	1.44	—

March 31, 2025 calculation

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

The financial leverage ratio of Roivant Sciences Ltd has fluctuated over the past few years, indicating changes in the company's capital structure and debt levels. The ratio was not available as of December 31, 2020, but from March 2021 to December 2023, the financial leverage ratio ranged from 1.20 to 2.35. This suggests that the company had varying degrees of reliance on debt financing during this period.

In the most recent quarters, the financial leverage ratio decreased to 1.16 as of March 31, 2025, indicating a slight improvement in the company's leverage position. A lower ratio generally indicates a lower level of debt relative to equity, which can imply lower financial risk and greater financial stability for the company.

It is important for Roivant Sciences Ltd to carefully manage its financial leverage ratio to ensure a healthy balance between debt and equity financing. A well-balanced capital structure can help the company maintain financial flexibility, manage risk effectively, and meet its financial obligations in a sustainable manner.