Is the business good?
How good a business is NVO?
Novo Nordisk A/S earns 33% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
33%
Return on invested capital · cost of capital 9.0% · 24 points above what the capital costs: growth creates value
- Operating margin
- 41%
Operating margin · Drug Manufacturers - General median 24% · fiscal year to FY2025
- Cash conversion
- 0.58×
Cash conversion · 0.73× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −0.34%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 43% |
| FY2021 | 42% |
| FY2022 | 42% |
| FY2023 | 44% |
| FY2024 | 44% |
| FY2025 | 41% |
Details›
- Gross marginfiscal year to FY2025
- 81%
- Operating marginfiscal year to FY2025
- 41%
- Net marginfiscal year to FY2025
- 33%
- Free cash flow margin
- 19%
- R&D as % of revenue
- 17%
- Revenue, trailing twelve months
- $309.1B
- Free cash flow, trailing twelve months
- $59.0B
- Net income, trailing twelve months
- $102.4B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 33%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Drug Manufacturers - General
Ranks #4 of 16 by Smart Score