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Novartis AGFRA:NOT -1.04%80 Cash Ratio is 0.24 as of Jun. 2026, which is 29% below its 10-year median of 0.34. GuruFocus rates FRA:NOT with a GF Score™ of 80/100 and a GF Value™ of €112.76 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 974 Drug Manufacturers companies, Novartis AG ranks worse than 71.87% on this metric.
Novartis AG has a Cash Ratio of 0.24. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Novartis AG's Cash Ratio or its related term are showing as below:
FRA:NOT'
s Cash Ratio Range Over the Past 10 Years
Min: 0.13 Med: 0.34 Max: 0.93
Current: 0.24
During the past 13 years, Novartis AG's highest Cash Ratio was 0.93. The lowest was 0.13. And the median was 0.34.
FRA:NOT's Cash Ratio is ranked worse than 71.87% of 974
companies
in the Drug Manufacturers industry
Industry Median: 0.605
vs FRA:NOT: 0.24
Novartis AG (FRA:NOT) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Novartis AG Cash Ratio Related Terms
Novartis AG Cash Ratio Historical Data
* Premium members only.
The historical data trend for Novartis AG's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Drug Manufacturers - General subindustry, Novartis AG's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Novartis AG Cash Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Novartis AG's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Novartis AG (FRA:NOT) has a Cash Ratio of 0.24 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Novartis AG and its competitors. This is 29% below median its historical median of 0.34. Over the past decade, Novartis AG's Cash Ratio has ranged from 0.13 to 0.93. According to the industry distribution chart, Novartis AG ranks #700 out of 974 companies in the Drug Manufacturers industry, placing it in the top 71.9%.
Is Novartis AG's Cash Ratio too high?
Novartis AG's current Cash Ratio of 0.24 is 29% below median its 10-year median of 0.34. Over the past 10 years, this metric has ranged from a low of 0.13 to a high of 0.93. The Drug Manufacturers industry median Cash Ratio is 0.61. Novartis AG's value of 0.24 is 60.3% below this industry median. Based on the distribution chart, Novartis AG ranks #700 out of 974 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Novartis AG has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's Cash Ratio compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #700 out of 974 companies for Cash Ratio. This places Novartis AG in the lower half of its industry. The industry median Cash Ratio is 0.61. Novartis AG's value of 0.24 is 60.3% below this benchmark. Historically, Novartis AG's own Cash Ratio has ranged from 0.13 to 0.93 over the past decade. While the company's 10-year median is 0.34 vs. the industry median of 0.61, Novartis AG has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Drug Manufacturers company?
The median Cash Ratio among Drug Manufacturers companies is 0.61, based on 974 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current Cash Ratio of 0.24 is 60.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median Cash Ratio is 0.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current Cash Ratio is 0.24, which is 29% below median its own 10-year median of 0.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novartis AG stock overvalued right now?
Based on GuruFocus' analysis, Novartis AG (FRA:NOT) is currently considered Modestly Overvalued. The stock's GF Value™ is €112.76, compared to a current price of €138.60 — trading 22.9% above its estimated fair value. The current Cash Ratio is 0.24, which is 29% below median its 10-year median of 0.34 and 60.3% below the Drug Manufacturers industry median of 0.61. Novartis AG's overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Novartis AG (FRA:NOT), the current Cash Ratio is 0.24 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Novartis AG (FRA:NOT) Overvalued in 2026?
Based on GuruFocus' analysis, Novartis AG stock appears to be overvalued.
The current stock price of €138.60 is trading 22.9% above its estimated GF Value™ of €112.76.
GuruFocus considers Novartis AG to be Modestly Overvalued.
Key valuation signals for FRA:NOT:
Cash Ratio: 0.24 (29% below median its 10-year median of 0.34)
GF Value™: €112.76 vs. price of €138.60 (22.9% above fair value)
Industry Position: 60.3% below the Drug Manufacturers median (#700 of 974)
No single metric tells the full story. See the FRA:NOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Novartis develops and manufactures innovative drugs. Key areas of drug development are oncology, immunology, neuroscience, respiratory, and cardiovascular, renal, and metabolic. It also has an established medicines business, which includes off-patent franchises. The company sells its products globally, with the United States constituting close to one-third of total revenue.
80GF Score
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