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NovoCure Altman Z-Score

: 6.30 (As of Today)
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Good Sign:

Altman Z-score of 6.38 is strong.

NovoCure has a Altman Z-Score of 6.30, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for NovoCure's Altman Z-Score or its related term are showing as below:

NAS:NVCR' s Altman Z-Score Range Over the Past 10 Years
Min: -3.63   Med: 10.2   Max: 54.7
Current: 6.38

-3.63
54.7

During the past 8 years, NovoCure's highest Altman Z-Score was 54.70. The lowest was -3.63. And the median was 10.20.


NovoCure Altman Z-Score Historical Data

The historical data trend for NovoCure's Altman Z-Score 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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only 0.25 5.14 6.89 18.94 19.20

NovoCure Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Altman Z-Score 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 54.70 19.20 12.55 20.44 10.88

Competitive Comparison

For the Medical Instruments & Supplies subindustry, NovoCure's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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.

   

NovoCure Altman Z-Score Distribution

For the Medical Devices & Instruments industry and Healthcare sector, NovoCure's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where NovoCure's Altman Z-Score falls into.



NovoCure Altman Z-Score Calculation

Altman 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.

NovoCure's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.8429+1.4*-0.5886+3.3*-0.0079+0.6*9.4206+1.0*0.4871
=6.30

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2021:
Total Assets was $1,120.5 Mil.
Total Current Assets was $1,069.0 Mil.
Total Current Liabilities was $124.5 Mil.
Retained Earnings was $-659.5 Mil.
Pre-Tax Income was -10.533 + -13.235 + -2.734 + 8.825 = $-17.7 Mil.
Interest Expense was -1.981 + -0.94 + -2.646 + -3.267 = $-8.8 Mil.
Revenue was 133.606 + 133.517 + 134.695 + 143.953 = $545.8 Mil.
Market Cap (Today) was $6,663.1 Mil.
Total Liabilities was $707.3 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(1069.006 - 124.549)/1120.453
=0.8429

X2=Retained Earnings/Total Assets
=-659.468/1120.453
=-0.5886

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-17.677 - -8.834)/1120.453
=-0.0079

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=6663.120/707.289
=9.4206

X5=Revenue/Total Assets
=545.771/1120.453
=0.4871

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

NovoCure has a Altman Z-Score of 6.30 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


NovoCure  (NAS:NVCR) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


NovoCure Altman Z-Score Related Terms

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


NovoCure Business Description

NovoCure logo
Industry
Traded in Other Exchanges
Address
Grenville Street, No. 4 The Forum, Second Floor, Saint Helier, JEY, JE2 4UF
NovoCure Ltd serves in the healthcare sector of the United States. Its business involves commercial-stage oncology operations involving therapies to cure critical tumors. Its pipeline consists of Ovarian Cancer, Pancreatic Cancer, Non-Small Cell Lung Cancer, and Brain Metastasis. NovoCure derives its major revenues in the United States.
Executives
Weinberg Uri officer: Chief Science Officer NOVOCURE INC., 20 VALLEY STREAM PARKWAY SUITE 300 MALVERN PA 19355
Groenhuysen Wilhelmus Cm officer: Chief Operating Officer C/O NAVTEQ CORPORATION 222 MERCHANDISE MART STE 900 CHICAGO IL 60654
Danziger Asaf director, officer: Chief Executive Officer 5 NACHUM CHAT ST. TIRAT HACARMEL L3 5112302
Leung Gabriel director C/O PERNIX THERAPEUTICS HOLDINGS, INC. 10 NORTH PARK PLACE, SUITE 201 MORRISTOWN NJ 07960
Shah Pritesh officer: Chief Commercial Officer C/O NOVOCURE INC. 20 VALLEY STREAM PARKWAY, SUITE 300 MALVERN PA 19355
Leonard Frank X officer: Chief Development Officer 20 VALLEY STREAM PARKWAY, SUITE 300 MALVERN PA 19355
Cordova Ashley officer: Chief Financial Officer 20 VALLEY STREAM PARKWAY, SUITE 300 MALVERN PA 19355
Madden Martin J. director C/O MICROBOT MEDICAL INC. 175 DERBY STREET 27/1 HINGHAM MA 02043
Benaim Ely officer: Chief Medical Officer C/O REXAHN PHARMACEUTICALS, INC. 15245 SHADY GROVE ROAD, SUITE 455 ROCKVILLE MD 20850
Doyle William F director, officer: Executive Chairman PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: DOYLE WILLIAM F a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Ambrogi Michael J. officer: Chief Operating Officer 195 COMMERCE WAY PORTSMOUTH NH 03801
Longsworth Todd Christopher officer: General Counsel NOVOCURE, 20 VALLEY STREAM PARKWAY SUITE 300 MALVERN PA 19355
Hilleman Jeryl L director C/O INTERSECT ENT, INC. 1555 ADAMS DRIVE MENLO PARK CA 94025
Mccoy Sherilyn S director JOHNSON & JOHNSON ONE JOHNSON & JOHNSON PLAZA NEW BRUNSWICK NJ 08933
Hung David director C/O AXOVANT SCIENCES, INC. 320 WEST 37TH STREET, 5TH FLOOR NEW YORK NY 10018

NovoCure Headlines

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