Novocure Ltd cash flow to debt ratio of -16.91% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Novocure Ltd's free cash flow has decreased 9.32% from $-69.22M last year to $-75.68M, signaling decreasing performance

Novocure Ltd's debt to equity ratio is 0.69, which means that the company's assets are unhealthy financed, signaling financial risk.

Novocure Ltd's debt has decreased relative to shareholder equity from 1.90 last year to 0.69 today, signaling strengthened financials

Novocure Ltd has a net cash position, so leverage is healthy.

Novocure Ltd earns at least as much interest as it pays. Interest obligations are fully covered.

Novocure Ltd's profit margin has increased (-23.74%) in the last year from -27.86% to -21.25%, signaling increasing performance

Novocure Ltd's short-term assets of $646.73M exceed its short-term liabilities of $223.23M

Novocure Ltd's return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Novocure Ltd's return on equity of -44.00%, is lower than 15.00%, indicating bad performance

Novocure Ltd's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Novocure Ltd had positive net income in only 0 out of 5 years, indicating unstable earnings

Novocure Ltd has negative free cash flow, indicating the company is burning cash rather than generating it

Novocure Ltd has negative free cash flow, indicating cash burn

Novocure Ltd's yearly earnings has increased -19.21% since last year from $-168.63M to $-136.23M, signaling increasing performance

Novocure Ltd's yearly revenue has increased 8.28% since last year from $605.22M to $655.35M, signaling increasing performance

ROIC -26.15% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Novocure Ltd's 3-year revenue CAGR of 6.81% is positive, indicating growing revenue over the past 3 years

Novocure Ltd had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Novocure Ltd had positive ROE in only 0 out of 5 years, indicating inconsistent returns on equity

Novocure Ltd has insufficient data to evaluate this check.

Novocure Ltd has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Novocure Ltd is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Novocure Ltd has negative or missing EBITDA, making EV/EBITDA ratio unreliable

Novocure Ltd is overvalued relative to its fair value price of -21.91 based on Earnings Fair Value model

Novocure Ltd has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Novocure Ltd has a price-to-book ratio of 5.94x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Novocure Ltd has a price-to-sales ratio of 2.87x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue