Roivant Sciences Ltd (ROIV)
Solvency ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.03 | 0.03 | 0.09 | 0.09 | 0.08 | 0.08 | 0.09 | 0.08 | 0.08 | 0.07 | 0.06 | 0.08 |
| Debt-to-capital ratio | 0.03 | 0.03 | 0.17 | 0.17 | 0.14 | 0.16 | 0.14 | 0.13 | 0.11 | 0.10 | 0.09 | 0.10 |
| Debt-to-equity ratio | 0.03 | 0.03 | 0.20 | 0.21 | 0.16 | 0.19 | 0.16 | 0.15 | 0.13 | 0.11 | 0.10 | 0.11 |
| 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 |
The solvency ratios of Roivant Sciences Ltd indicate the company's ability to meet its financial obligations over the long term.
The debt-to-assets ratio has been relatively stable around 0.08-0.09 in recent quarters, indicating that the company has a low level of debt in relation to its total assets. This suggests a strong ability to cover its liabilities with its assets.
The debt-to-capital ratio has also remained consistent at around 0.13-0.17, showing that the company relies minimally on debt to finance its operations compared to its total capital. This indicates a healthy capital structure.
The debt-to-equity ratio has exhibited some fluctuations, ranging from 0.11 to 0.21, but has generally been within a manageable range. This ratio illustrates the proportion of debt relative to shareholders' equity, with lower ratios indicating less reliance on debt for financing.
The financial leverage ratio has varied between 1.42 and 2.35 over the past year, revealing the company's level of financial risk and leverage. A higher ratio signifies a greater reliance on debt financing, while a lower ratio indicates a more conservative capital structure.
Overall, the solvency ratios of Roivant Sciences Ltd reflect a sound financial position with a prudent use of debt to support its operations and growth.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 126.69 | 119.54 | -33.68 | -34.27 | -43.57 | -60.05 | -83.17 | -151.75 | -119.00 |
The interest coverage ratio for Roivant Sciences Ltd has fluctuated over the past several quarters, ranging from -151.75 to 126.69.
A high interest coverage ratio indicates that the company is generating significantly more earnings before interest and taxes (EBIT) than it needs to cover its interest expenses, which is a positive sign of financial health. In contrast, a low or negative interest coverage ratio suggests that the company may have difficulty meeting its interest obligations with its current level of earnings.
It is worth noting that the interest coverage ratio improved significantly in the most recent quarter, reaching 126.69, which indicates that the company's ability to cover its interest expenses has strengthened. This positive trend may be attributed to increased earnings or more efficient management of the company's debt levels.
Overall, while the fluctuation in the interest coverage ratio suggests some variability in Roivant Sciences Ltd's financial performance, the recent improvement is a positive development that may indicate improved financial stability and management of interest obligations.