Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 2026
Roivant Sciences Ltd. (ROIV)
A forensic read on Roivant Sciences Ltd. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
16.1
Altman Z-score
Clean
Earnings quality
6
Forensic signals
-6.9%
ROE
$24.5B
Market cap
Roivant Sciences Ltd. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is 16.1, placing it in the Safe zone. 6 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
-0.61×Cash conversion.Over FY2024–FY2026, operating cash flow was -0.61× cumulative net income. Reported profit is not turning into cash — a classic earnings-quality warning.
+44.2%Accruals ratio.Net operating assets grew +44.2% relative to their average in FY2026 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran ahead of operating cash by +14% of net operating assets.
597d DSOReceivables vs revenue.Days sales outstanding moved from 352 to 597 days FY2023→FY2024 (receivables +76% vs revenue +4%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections.
393dInventory days.Days inventory outstanding moved from 32 to 393 FY2023→FY2024 (against revenue (COGS not disclosed); inventory +1177% vs +4% in revenue). Inventory is outrunning what's being sold — a flag for softening demand or obsolescence risk ahead.
-10%Return on invested capital.Return on invested capital is -10% and rising from -149% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
4191% of revStock-based comp load.Stock-based compensation ran 4191% of revenue in FY2026 — about $0.50 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-3629.2%
Debt / Equity0.10x
Free Cash Flow$-758.6M
Latest Revenue$8.3M
Return on Equity-6.6%
Revenue Growth YoY-71.6%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Roivant Sciences Ltd.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about ROIV's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown