NovoCure Limited — Earnings Quality Grade F
NVCR · Healthcare
Major red flags
Screening Summary
管理层信号
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 50 days, change +5 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 8.3%, CFFO -85.9%. Cash follows revenue
Expense Quality
Inventory 17.2% vs COGS 21.6%. Normal
CapEx growth -37.8% vs revenue 8.3%. Normal
SG&A/Gross Profit = 85.5%, exceeds 70%
Gross margin 74.5%, change -2.8pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.1B)
Accruals ratio = -10.8%. Low accruals
Cash $0.4B covers debt $0.2B
Balance Sheet Health
No goodwill. Clean balance sheet
Interest coverage = -9.0x (<2x). Financial stress
Other assets -27.5% vs revenue 8.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
No goodwill
Manipulation Score
M-Score = -2.65 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25