Novartis Balance Sheet Health
Financial Health criteria checks 2/6
Novartis has a total shareholder equity of $41.9B and total debt of $27.2B, which brings its debt-to-equity ratio to 64.9%. Its total assets and total liabilities are $97.5B and $55.6B respectively. Novartis's EBIT is $14.8B making its interest coverage ratio 53. It has cash and short-term investments of $8.4B.
Key information
64.9%
Debt to equity ratio
US$27.20b
Debt
| Interest coverage ratio | 53x |
| Cash | US$8.43b |
| Equity | US$41.90b |
| Total liabilities | US$55.60b |
| Total assets | US$97.51b |
Recent financial health updates
Financial Position Analysis
Short Term Liabilities: NOVN's short term assets ($25.7B) do not cover its short term liabilities ($27.6B).
Long Term Liabilities: NOVN's short term assets ($25.7B) do not cover its long term liabilities ($28.0B).
Debt to Equity History and Analysis
Debt Level: NOVN's net debt to equity ratio (44.8%) is considered high.
Reducing Debt: NOVN's debt to equity ratio has increased from 54.8% to 64.9% over the past 5 years.
Debt Coverage: NOVN's debt is well covered by operating cash flow (55.4%).
Interest Coverage: NOVN's interest payments on its debt are well covered by EBIT (53x coverage).