NVO Current Ratio Analysis
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 percentileNVO
0.79x
Sector Median
2.02x
Sector Avg
3.77x
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).
Learn More About Current Ratio
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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0.79x
Sector Median
2.02x
Sector Avg
3.77x
How NVO's Current Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.