ROIV, Roivant Sciences Ltd.

Will it survive?

• Can it pay its interest? -14.8×
  Does not cover its interest
  Operating income ($515M) ÷ interest expense $35M
  What this means

  A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.

• How heavy is the debt, net of cash? +$3.8B
  Net cash
  Cash $1.4B + ST investments $2.9B − debt $443M
  What this means

  Cash and short-term investments exceed every dollar of debt by $3.8B, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.

• How long is cash tied up? —
  Not enough data
  What this means

  The filing data didn't include the inputs for this check.

Is it a good business?

• Return on invested capital -11%
  Below average
  NOPAT ($407M) ÷ invested capital $3.6B (debt + equity − cash)
  Industry peers: median -64%
  What this means

  The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.

• Owner-earnings margin -2715%
  Consumes cash through the cycle
  6-yr median margin, range -9184%–-1257%; latest ($759M) = operating cash ($750M) − maintenance capex $8M
  Industry peers: median -1243%
  What this means

  What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -9184% of revenue this year, a -2715% median across 6 years. Treating stock comp as the real expense it is (less $346M of SBC) leaves ($1.1B).

• Are earnings backed by cash? ($750M)
  Loss, and burning cash
  Net income ($300M) · cash from operations ($750M)
  What this means

  The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did not.

How is the cash used?

• Where do the earnings go? —
  No surplus to allocate
  What this means

  The business didn't generate positive Owner Earnings this year, so any distributions came from the balance sheet or borrowing, not from operations.

• Investing or harvesting? 2.45×
  Expanding
  Capex $8M ÷ depreciation $3M
  What this means

  Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

• Adequate size Miss
  Revenue ≥ $2B · $8M
  What this means

  Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.

• Strong liquidity Pass
  Current ratio ≥ 2× · 18.37×
  What this means

  Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.

• Conservative debt Pass
  Debt ≤ working capital · $443M vs $4.9B WC
  What this means

  Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.

• Earnings stability Miss
  A profit every year (6-yr record) · 5 loss years
  What this means

  Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.

• Dividend record Miss
  Uninterrupted dividends · none paid
  What this means

  An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.

• Earnings growth —
  Earnings +33% over the record · —
  What this means

  Earnings were negative early in the record, a growth rate isn't meaningful.

• Moderate price —
  P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
  What this means

  Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $1.80/share (latest year $-0.42), the averaged base the calculator's gate runs on, and book value is $6.29/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2021–2026

Whether the record’s returns held, and what the capital reinvested earned.

• Profitable years 1 of 6
  What this means

  Lost money in 5 year(s), look at what happened there before trusting the average.

• Operating margin −3274% → 1353% (3-yr avg ends)
  What this means

  Through the cycle the operating margin widened — about −3274% early to 1353% lately, median −3453% — pricing power intact or improving.

• Worst year 2026 · −6235.7% op. margin
  What this means

  Operations went underwater in 2026, understand why before trusting the good years.

• Share count +1.9%/yr
  What this means

  The share count is rising, dilution works against you on a per-share basis.