Novo Nordisk A/S
NVO Healthcare Drug Manufacturers General
Novo Nordisk A/S’s revenue for fiscal 2025 (year ended December 2025) was $46.8 billion, up 11.1% from fiscal 2024. In the quarter to June 2026, revenue grew 4.47%, EPS fell 18.7%, free cash flow grew 71.6% and total debt rose 44.4%, each against the same quarter a year earlier. Revenue growth for ten consecutive years, operating cash flow growth for five.
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Novo Nordisk A/S (NVO) Altman Z-score
Novo Nordisk A/S's Altman Z-score for fiscal 2025 is 4.32, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 4.32 | (2.42) |
| FY2024 | 6.74 | (4.64) |
| FY2023 | 11.38 | 0.99 |
| FY2022 | 10.40 | 0.40 |
| FY2021 | 9.99 | (0.52) |
| FY2020 | 10.51 | (0.60) |
| FY2019 | 11.11 | 0.55 |
| FY2018 | 10.57 | (2.90) |
| FY2017 | 13.47 | 2.87 |
| FY2016 | 10.61 | (6.68) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.08) | — | −0.10 | |
| Retained earnings / total assets | 0.36 | — | 0.50 | |
| EBIT / total assets | 0.24 | — | 0.78 | |
| Market value of equity / total liabilities | 4.28 | — | 2.57 | |
| Sales / total assets | 0.57 | — | 0.57 | |
| Altman Z-score | Safe zone | 4.32 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 2.81 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| AZN AstraZeneca PLC compare | 6.3× |
| NVO Novo Nordisk A/S | 4.3× |
| NVS Novartis AG compare | 4.1× |
| GILD Gilead Sciences, Inc. compare | 4.0× |
| SNY Sanofi compare | 2.5× |
| BMY Bristol Myers Squibb Company compare | 2.1× |
| GSK GSK PLC Sponsored ADR compare | 2.1× |
| PFE Pfizer Inc. compare | 2.0× |
| AMGN Amgen Inc. compare | 1.7× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets