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Novo Nordisk A/S Financial Strength

: 6 (As of Jun. 2021)
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Novo Nordisk A/S has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Novo Nordisk A/S did not have earnings to cover the interest expense. Novo Nordisk A/S's debt to revenue ratio for the quarter that ended in Jun. 2021 was 0.10. As of today, Novo Nordisk A/S's Altman Z-Score is 12.65.


Competitive Comparison

For the Biotechnology subindustry, Novo Nordisk A/S's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

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



Novo Nordisk A/S Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

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

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

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Novo Nordisk A/S's Debt to Revenue Ratio for the quarter that ended in Jun. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(210.7701778829 + 2019.0843404724) / 21411.398762272
=0.10

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Novo Nordisk A/S has a Z-score of 12.65, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 12.65 is strong.

* 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.


Novo Nordisk A/S  (NYSE:NVO) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Novo Nordisk A/S has the Financial Strength Rank of 6.


Novo Nordisk A/S Financial Strength Related Terms

Thank you for viewing the detailed overview of Novo Nordisk A/S's Financial Strength 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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