The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Novartis AG's quick ratio for the quarter that ended in Mar. 2026 was 0.65.
Novartis AG has a quick ratio of 0.65. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Novartis AG's Quick Ratio or its related term are showing as below:
XSWX:NOVNEE'
s Quick Ratio Range Over the Past 10 Years
Min: 0.5 Med: 0.79 Max: 1.29
Current: 0.65
During the past 13 years, Novartis AG's highest Quick Ratio was 1.29. The lowest was 0.50. And the median was 0.79.
XSWX:NOVNEE's Quick Ratio is ranked worse than 83% of 994
companies
in the Drug Manufacturers industry
Industry Median: 1.45
vs XSWX:NOVNEE: 0.65
Novartis AG (XSWX:NOVNEE) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Novartis AG Quick Ratio Related Terms
Novartis AG Quick Ratio Historical Data
* Premium members only.
The historical data trend for Novartis AG's Quick 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.
XSWX:NOVNEE vs LLY, JNJ, ABBV: Quick Ratio Comparison
For the Drug Manufacturers - General subindustry, Novartis AG's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Novartis AG's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Novartis AG's Quick Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Quick Ratio of 0.65 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Novartis AG and its competitors. This is 18% below median its historical median of 0.79. Over the past decade, Novartis AG's Quick Ratio has ranged from 0.50 to 1.29. According to the industry distribution chart, Novartis AG ranks #825 out of 994 companies in the Drug Manufacturers industry, placing it in the top 83%.
Is Novartis AG's Quick Ratio too high?
Novartis AG's current Quick Ratio of 0.65 is 18% below median its 10-year median of 0.79. Over the past 10 years, this metric has ranged from a low of 0.50 to a high of 1.29. The Drug Manufacturers industry median Quick Ratio is 1.45. Novartis AG's value of 0.65 is 55.2% below this industry median. Based on the distribution chart, Novartis AG ranks #825 out of 994 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. 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 Quick Ratio compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #825 out of 994 companies for Quick Ratio. This places Novartis AG in the lower half of its industry. The industry median Quick Ratio is 1.45. Novartis AG's value of 0.65 is 55.2% below this benchmark. Historically, Novartis AG's own Quick Ratio has ranged from 0.50 to 1.29 over the past decade. While the company's 10-year median is 0.79 vs. the industry median of 1.45, 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 Quick Ratio for a Drug Manufacturers company?
The median Quick Ratio among Drug Manufacturers companies is 1.45, based on 994 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current Quick Ratio of 0.65 is 55.2% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median Quick Ratio is 1.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current Quick Ratio is 0.65, which is 18% below median its own 10-year median of 0.79. 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 Quick Ratio of 0.65. 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 Quick Ratio is 0.65, which is 18% below median its 10-year median of 0.79 and 55.2% below the Drug Manufacturers industry median of 1.45. 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 Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Novartis AG (XSWX:NOVNEE), the current Quick Ratio is 0.65 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:
Quick Ratio: 0.65 (18% below median its 10-year median of 0.79)
GF Value™: CHF97.39 vs. price of CHF119.30 (22.5% above fair value)
Industry Position: 55.2% below the Drug Manufacturers median (#825 of 994)
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
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