NVONEUTRAL

NVO Return on Equity (ROE) Analysis

71.4%

Higher than 89% of Healthcare sector peers

Updated 190h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity.

Sector Performance

89th percentile

NVO

71.4%

Sector Median

8.9%

Sector Avg

37.1%

Prior Period

52.8%(May 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity.

NVO’s current ROE of 71.4% means it earns $0.714 for every dollar of equity, far above the healthcare sector median of 8.9% and placing it in the 89th percentile among peers. The year-over-year change is not available, but quarter-over-quarter ROE increased by 35.2% from 52.8% to 71.4%, indicating a sharp recent improvement. The combination of a very high level and a rising quarterly trend points to strong profitability momentum, which can be an opportunity but also raises questions about sustainability given only two data points. This metric alone suggests above-average financial efficiency, which does not directly contradict the NEUTRAL verdict — the neutral rating likely reflects other factors such as valuation or competitive risks that temper the positive signal from ROE.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about NVO?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does NVO's Return on Equity (ROE) compare to its sector?

NVO's Return on Equity (ROE) of 71.4% compares to a Healthcare sector median of 8.9%, placing it in the 89th percentile.

Who are NVO's closest peers by Return on Equity (ROE)?

The closest Healthcare peers by Return on Equity (ROE) include: BIIB (7.7%), TECH (5.3%), TMO (13.5%), VEEV (13.9%), REGN (14.5%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.