NovoCure (NAS:NVCR) Debt-to-EBITDA

: -2.45 (As of Jun. 2023)

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Debt-to-EBITDA measures a company's ability to pay off its debt.

NovoCure's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $0.0 Mil. NovoCure's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $587.5 Mil. NovoCure's annualized EBITDA for the quarter that ended in Jun. 2023 was $-239.8 Mil. NovoCure's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2023 was -2.45.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for NovoCure's Debt-to-EBITDA or its related term are showing as below:

NVCR' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -14.99 Med: -0.88 Max: 12.11
Current: -3.48

During the past 10 years, the highest Debt-to-EBITDA Ratio of NovoCure was 12.11. The lowest was -14.99. And the median was -0.88.

NVCR's Debt-to-EBITDA is ranked worse than
100% of 407 companies
in the Medical Devices & Instruments industry
Industry Median: 1.17 vs NVCR: -3.48

NovoCure Debt-to-EBITDA Historical Data

The historical data trend for NovoCure's Debt-to-EBITDA 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.

* Premium members only.

NovoCure Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Debt-to-EBITDA

-6.37

12.11

9.91

-14.99

-8.61

NovoCure Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Debt-to-EBITDA																-7.81	-6.60	-4.99	-2.55	-2.45

Competitive Comparison

For the Medical Devices subindustry, NovoCure's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.

Annual Data Quarterly Data

NovoCure Debt-to-EBITDA Distribution

For the Medical Devices & Instruments industry and Healthcare sector, NovoCure's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where NovoCure's Debt-to-EBITDA falls in comparison to its industry or sector. The grey bar indicates the Debt-to-EBITDA's extreme value range as defined by GuruFocus.

NovoCure Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

NovoCure's Debt-to-EBITDA for the fiscal year that ended in Dec. 2022 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(0	+	584.271)	/	-67.888
	=	-8.61

NovoCure's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(0	+	587.479)	/	-239.756
	=	-2.45

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jun. 2023) EBITDA data.

NovoCure (NAS:NVCR) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

NovoCure Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of NovoCure's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

NovoCure (NAS:NVCR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » NovoCure Ltd (NAS:NVCR) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

NVCR:Mexico 038:Germany

Address

Grenville Street, No. 4 The Forum, Second Floor, St. Helier, JEY, JE2 4UF

Website

https://www.novocure.com

NovoCure Ltd serves in the healthcare sector of the United States. Its business involves the development, manufacture and commercialization of Tumor Treating Fields (TTFields) devices, including Optune and Optune Lua, for the treatment of solid tumor cancers. Its pipeline consists of Ovarian Cancer, Pancreatic Cancer, Non-Small Cell Lung Cancer, and Brain Metastasis. Products are comprised of two main components: electric field generator and arrays and related accessories. NovoCure derives its major revenues in the United States.

Executives

Arye Barak Ben	officer: General Counsel	TOPAZ BUILDING, 4TH FLOOR, MATAM CENTER, PO BOX 15022, SH'AR HACARMEL, HAIFA L3 31905
Timothy J Scannell	director	2825 AIRVIEW BOULEVARD, KALAMAZOO MI 49002
Kristin Stafford	director	1550 LIBERTY RIDGE DRIVE, SUITE 115, WAYNE PA 19087
Uri Weinberg	officer: Chief Innovation Officer	NOVOCURE INC., 20 VALLEY STREAM PARKWAY, SUITE 300, MALVERN PA 19355
Frank X Leonard	officer: President, CNS Cancers US	20 VALLEY STREAM PARKWAY,, SUITE 300, MALVERN PA 19355
Ashley Cordova	officer: Chief Financial Officer	20 VALLEY STREAM PARKWAY,, SUITE 300, MALVERN PA 19355
William Patrick Burke	officer: Chief Human Resources Officer	195 COMMERCE WAY, PORTSMOUTH NH 03801
Allyson J Ocean	director	1550 LIBERTY RIDGE DRIVE, SUITE 115, WAYNE PA 19087
Ely Benaim	officer: Chief Medical Officer	C/O REXAHN PHARMACEUTICALS, INC., 15245 SHADY GROVE ROAD, SUITE 455, ROCKVILLE MD 20850
Jeryl L Hilleman	director	C/O INTERSECT ENT, INC., 1555 ADAMS DRIVE, MENLO PARK CA 94025
Pritesh Shah	officer: Chief Commercial Officer	C/O NOVOCURE INC., 20 VALLEY STREAM PARKWAY, SUITE 300, MALVERN PA 19355
Sherilyn S Mccoy	director	JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
David Hung	director	C/O AXOVANT SCIENCES, INC., 320 WEST 37TH STREET, 5TH FLOOR, NEW YORK NY 10018
Martin J. Madden	director	C/O MICROBOT MEDICAL INC., 175 DERBY STREET 27/1, HINGHAM MA 02043
Pomona Secondary Associates Vii Llc	10 percent owner	780 THIRD AVENUE, 46TH FLOOR, NEW YORK NY 10017