Roivant Sciences Ltd (ROIV)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — |
| 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 | — |
Roivant Sciences Ltd has shown a consistently strong solvency position based on its solvency ratios over the recent periods. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at zero, indicating that the company has no debt relative to its total assets, capital, and equity. This implies that the company is not overly reliant on debt financing for its operations and investments.
The Financial leverage ratio, which measures the extent of a company's financial leverage, has shown some fluctuations over the periods. The ratio increased from 1.44 in March 2021 to 2.35 in September 2023, indicating an increase in financial risk and leverage during that period. However, it decreased again to 1.16 by March 2025, suggesting some reduction in financial leverage.
Overall, the solvency ratios suggest that Roivant Sciences Ltd has maintained a stable and healthy solvency position, with minimal debt levels and a moderate level of financial leverage. This indicates a strong ability to meet its financial obligations and withstand financial challenges.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -15.24 | 138.33 | 100.96 | 109.28 | 119.59 | -30.94 | -31.71 | -31.50 | -37.40 | -50.00 | -20.33 | -2.84 | -2.29 | -2.63 | -2.82 | -4.88 | -4.00 | -2.59 |
Roivant Sciences Ltd's interest coverage ratio has exhibited significant fluctuations over the period from December 31, 2020, to March 31, 2025. The interest coverage ratio is a measure of a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A negative interest coverage ratio indicates that the company's EBIT is insufficient to cover its interest payments.
From December 31, 2020, to June 30, 2022, Roivant Sciences Ltd had consistently negative interest coverage ratios, indicating financial distress and a potential inability to meet its interest obligations from its operating earnings. However, in September 2022, the interest coverage ratio plummeted to a concerning -20.33, demonstrating a significant deterioration in the company's ability to cover its interest expenses.
The situation worsened in the following quarters, with the interest coverage ratios continuing to decline steeply, reaching alarming levels below -30. This downward trend raised serious concerns about the company's financial health and its ability to service its debt obligations.
However, a positive turnaround occurred in the quarter ending March 31, 2024, where the interest coverage ratio surged to 119.59, indicating a remarkable improvement in Roivant Sciences Ltd's ability to cover its interest expenses with its operating earnings. This positive performance continued, with subsequent quarters showing consistently high interest coverage ratios above 100, reflecting a strong financial position and a significant increase in the company's capacity to service its debt.
By the end of the period on March 31, 2025, the interest coverage ratio had declined to -15.24, signifying a reduction in Roivant Sciences Ltd's ability to cover its interest expenses compared to the peak levels observed earlier. Overall, the fluctuating interest coverage ratios of Roivant Sciences Ltd reflect the company's evolving financial stability and its ability to manage its debt obligations.