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Novo Nordisk A/S Interest Coverage

: 0 (At Loss) (As of Jun. 2021)
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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. Novo Nordisk A/S's Operating Income for the three months ended in Jun. 2021 was $2,394 Mil. Novo Nordisk A/S's Interest Expense for the three months ended in Jun. 2021 was $8 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Novo Nordisk A/S's Interest Coverage or its related term are showing as below:


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Novo Nordisk A/S Interest Coverage Historical Data

The historical data trend for Novo Nordisk A/S'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.

* Premium members only.

Novo Nordisk A/S Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 745.11 544.08 555.86 238.56 138.78

Novo Nordisk A/S Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.66 45.91 - 18.80 -

Competitive Comparison

For the Biotechnology subindustry, Novo Nordisk A/S'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.

   

Novo Nordisk A/S Interest Coverage Distribution

For the Biotechnology industry and Healthcare sector, Novo Nordisk A/S's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Novo Nordisk A/S's Interest Coverage falls into.



Novo Nordisk A/S Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Novo Nordisk A/S's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Novo Nordisk A/S's Interest Expense was $-64 Mil. Its Operating Income was $8,851 Mil. And its Long-Term Debt & Capital Lease Obligation was $474 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*8850.7701867417/-63.773424469372
=138.78

Novo Nordisk A/S's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the three months ended in Jun. 2021, Novo Nordisk A/S's Interest Expense was $8 Mil. Its Operating Income was $2,394 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,019 Mil.

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Novo Nordisk A/S  (NYSE:NVO) 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 .


Novo Nordisk A/S Interest Coverage Related Terms

Thank you for viewing the detailed overview of Novo Nordisk A/S's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Novo Nordisk A/S Business Description

Novo Nordisk A/S logo
Industry
Healthcare » Biotechnology NAICS : 325412 SIC : 2836
Address
Novo Alle 1, Bagsvaerd, DNK, DK-2880
With almost 50% market share by volume of the global insulin market, Novo Nordisk is the leading provider of diabetes-care products in the world. Based in Denmark, the company manufactures and markets a variety of human and modern insulins, injectable diabetes treatments, and oral antidiabetic agents. Novo also has a biopharmaceutical segment (constituting roughly 15% of revenue) that specializes in protein therapies for hemophilia and other disorders.

Novo Nordisk A/S Headlines

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