Novartis AGXSWX:NOVNEE -0.52%83 Interest Coverage is 12.35 as of Mar. 2026, which is 6% above its 10-year median of 11.63. GuruFocus rates XSWX:NOVNEE with a GF Score™ of 83/100 and a GF Value™ of CHF97.39. The stock has 7 warning signs investors should review. Among 684 Drug Manufacturers companies, Novartis AG ranks better than 52.34% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Novartis AG's
Operating Income
for the
three
months ended in Mar. 2026 was CHF3,334 Mil. Novartis AG's Interest Expense for the
three
months ended in Mar. 2026 was CHF-270 Mil.
Novartis AG's interest coverage for the quarter that ended in Mar. 2026 was 12.35.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Novartis AG's Interest Coverage or its related term are showing as below:
XSWX:NOVNEE'
s Interest Coverage Range Over the Past 10 Years
Min: 9.02 Med: 11.63 Max: 15.42
Current: 14.16
XSWX:NOVNEE's Interest Coverage is ranked better than 52.34% of 684
companies
in the Drug Manufacturers industry
Industry Median: 12.765
vs XSWX:NOVNEE: 14.16
Novartis AG (XSWX:NOVNEE) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Novartis AG Interest Coverage Related Terms
Novartis AG Interest Coverage Historical Data
* Premium members only.
The historical data trend for Novartis AG's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
XSWX:NOVNEE vs LLY, JNJ, ABBV: Interest Coverage Comparison
For the Drug Manufacturers - General subindustry, Novartis AG's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Novartis AG's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (XSWX:NOVNEE) has a Interest Coverage of 12.35 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Novartis AG and its competitors. This is near median its historical median of 11.63. Over the past decade, Novartis AG's Interest Coverage has ranged from 9.02 to 15.42. According to the industry distribution chart, Novartis AG ranks #326 out of 684 companies in the Drug Manufacturers industry, placing it in the top 47.7%.
Is Novartis AG's Interest Coverage too high?
Novartis AG's current Interest Coverage of 12.35 is near median its 10-year median of 11.63. Over the past 10 years, this metric has ranged from a low of 9.02 to a high of 15.42. The Drug Manufacturers industry median Interest Coverage is 12.77. Novartis AG's value of 12.35 is 3.3% below this industry median. Based on the distribution chart, Novartis AG ranks #326 out of 684 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Novartis AG has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's Interest Coverage compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #326 out of 684 companies for Interest Coverage. This puts Novartis AG in the upper half of its industry. The industry median Interest Coverage is 12.77. Novartis AG's value of 12.35 is 3.3% below this benchmark. Historically, Novartis AG's own Interest Coverage has ranged from 9.02 to 15.42 over the past decade. While the company's 10-year median is 11.63 vs. the industry median of 12.77, 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 Interest Coverage for a Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.77, based on 684 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current Interest Coverage of 12.35 is 3.3% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current Interest Coverage is 12.35, which is near median its own 10-year median of 11.63. 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?
Novartis AG (XSWX:NOVNEE) has a current Interest Coverage of 12.35. The stock's GF Value™ is CHF97.39, compared to a current price of CHF119.30 — trading 22.5% above its estimated fair value. The current Interest Coverage is 12.35, which is near median its 10-year median of 11.63 and 3.3% below the Drug Manufacturers industry median of 12.77. Novartis AG's overall GF Score™ is 83/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Novartis AG (XSWX:NOVNEE), the current Interest Coverage is 12.35 as of Mar. 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 (XSWX:NOVNEE) Overvalued in 2026?
Based on GuruFocus' analysis, Novartis AG stock appears to be overvalued.
The current stock price of CHF119.30 is trading 22.5% above its estimated GF Value™ of CHF97.39.
Key valuation signals for XSWX:NOVNEE:
Interest Coverage: 12.35 (near median its 10-year median of 11.63)
GF Value™: CHF97.39 vs. price of CHF119.30 (22.5% above fair value)
Industry Position: 3.3% below the Drug Manufacturers median (#326 of 684)
No single metric tells the full story. See the XSWX:NOVNEE 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.
83GF Score
Get the complete analysis for XSWX:NOVNEE
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:NOVNEE has been successfully added to your 
