NVONEUTRAL

NVO Current Ratio Analysis

0.79x

Higher than 2% of Healthcare sector peers

Updated 168h ago·SEC filings & market data

Key Takeaway

The current ratio of 0.79x means NVO has $0.79 in current assets for every $1.00 in short-term liabilities, indicating less liquidity than is generally considered healthy.

Sector Performance

2th percentile

NVO

0.79x

Sector Median

2.02x

Sector Avg

3.77x

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Deep Analysis

The current ratio of 0.79x means NVO has $0.79 in current assets for every $1.00 in short-term liabilities, indicating less liquidity than is generally considered healthy.

Among healthcare sector peers, the median current ratio is 2.02x, placing NVO at the 2nd percentile — well below most competitors. No historical trend data is available: the year-over-year change is not applicable, and the quarter-over-quarter change is also not applicable, so no directional pattern can be assessed. The combination of a low current ratio with no trend information suggests elevated short-term liquidity risk, as the company may struggle to cover upcoming obligations without additional financing. This metric contradicts the overall NEUTRAL verdict because a ratio far below the sector median and near the bottom of the peer group implies a weakness that a neutral stance would typically avoid highlighting.

Frequently Asked Questions

What does the Current Ratio tell investors about NVO?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does NVO's Current Ratio compare to its sector?

NVO's Current Ratio of 0.79x compares to a Healthcare sector median of 2.02x, placing it in the 2th percentile.

Who are NVO's closest peers by Current Ratio?

The closest Healthcare peers by Current Ratio include: A (2.10x), BSX (1.90x), BAX (1.85x), EXAS (2.23x), TMO (1.53x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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NVO

0.79x

Sector Median

2.02x

Sector Avg

3.77x

How NVO's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.