Roivant Sciences Ltd (ROIV)
Interest coverage
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 4,288,210 | -1,196,870 | -922,638 | -1,070,900 |
| Interest expense | US$ in thousands | — | 34,778 | 27,968 | 7,041 | 2,809 |
| Interest coverage | — | 123.30 | -42.79 | -131.04 | -381.24 |
March 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —
Interest coverage ratio measures a company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher ratio indicates the company is more capable of servicing its debt.
For Roivant Sciences Ltd, the interest coverage ratio has shown a fluctuating trend over the years. It was negative in 2021, indicating that the company's EBIT was not sufficient to cover its interest expenses. The situation improved slightly in 2022 and 2023 but was still negative, suggesting continued struggles in meeting interest payments.
However, there was a significant turnaround in 2024, with the interest coverage ratio reaching a positive value of 123.30. This indicates a strong improvement in the company's ability to cover its interest expenses with its operating income. Unfortunately, data for 2025 is unavailable.
Overall, the trend in Roivant Sciences Ltd's interest coverage ratio has been volatile, with substantial improvement in 2024. It is crucial for the company to maintain a healthy interest coverage ratio to ensure financial stability and meet its debt obligations effectively.
Peer comparison
Mar 31, 2025