Novartis Current Financial Leverage

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NVS -- USA Stock  

Report: 21st of July 2020  

Novartis financial leverage is the degree to which the firm utilises its fixed-income securities. Companies with high leverage are usually considered to be at financial risk. Novartis AG financial risk is the risk to Novartis stockholders that is caused by an increase in debt. In other words with a high degree of financial leverage come high interest payments which usually reduces Earnings Per Share (EPS). Additionally, see the analysis of Novartis Fundamentals Over Time.

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As of 07/10/2020, Debt Current is likely to grow to about 7.7 B, while Total Debt is likely to drop slightly above 28.7 B.

Novartis Financial Leverage Rating

Total Macroaxis Rating
Not Rated
Average S&P Rating
Piotroski F Score
6  Healthy

Novartis AG Debt to Cash Allocation

The company has 36.69 B in debt with debt to equity (D/E) ratio of 0.72, which is OK given its current industry classification. Novartis AG has a current ratio of 0.73, suggesting that it has not enough short term capital to pay financial commitments when the payables are due.

Novartis Total Assets Over Time


Novartis AG Historical Liabilities

Understending Novartis Use of Financial Leverage

Novartis financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures the total debt position of Novartis, including all of Novartis's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Novartis assets, the company is considered highly leveraged. Understanding the composition and structure of overall Novartis debt and outstanding corporate bonds gives a good idea as to how risky the capital structure of a business and if it is worth investing in it. Please read more on our technical analysis page.
Last ReportedProjected for 2020
Total Debt29.3 B28.7 B
Debt Current7.3 B7.7 B
Debt Non Current22.1 B21 B
Issuance Repayment of Debt Securities-5 B-5.1 B
Debt to Equity Ratio 1.13  1.06 
Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company was founded in 1895 and is headquartered in Basel, Switzerland. Novartis operates under Drug ManufacturersGeneral classification in the United States and is traded on BATS Exchange. It employs 109000 people.

Current Sentiment - NVS

Novartis AG Investor Sentiment

Predominant part of Macroaxis users are now bullish on Novartis AG. What is your trading attitude regarding investing in Novartis AG? Are you bullish or bearish?
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Additionally, see the analysis of Novartis Fundamentals Over Time. Please also try Piotroski F Score module to get piotroski f score based on binary analysis strategy of nine different fundamentals.
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