Smith & Nephew plc (SNN) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 23, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 20-F for FY2025, filed Mar 16, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the SNN SEC filings page.
Smith & Nephew plc (SNN) reported $6.2B in revenue for fiscal year 2025, up 6.1% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 11 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Operating efficiency and cash conversion drove Smith & Nephew’s 2025 recovery, despite gross-margin pressure from rising production costs.
From FY2023 to FY2025, revenue grew11.1% while operating income rose86.8% , revealing substantial operating leverage. Operating cash flow rose111.3% over the same span, outpacing operating profit and making the recovery more cash-supported than the income statement alone suggests.
The 2025 margin shape was mixed: gross margin fell
Operating cash flow was
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group, and the overall is the average of the dimensions that can be computed: here 5 of 6, with the others left out rather than counted as zero. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Smith & Nephew plc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Smith & Nephew plc has an operating margin of 12.9%, meaning the company retains $13 of operating profit per $100 of revenue. This strong profitability earns a score of 71/100, reflecting efficient cost management and pricing power. This is up from 11.3% the prior year.
Smith & Nephew plc's revenue grew 6.1% year-over-year to $6.2B, a solid pace of expansion. This earns a growth score of 51/100.
Smith & Nephew plc has a moderate D/E ratio of 0.59. This balance of debt and equity financing earns a leverage score of 33/100.
With a current ratio of 2.57, Smith & Nephew plc holds $2.57 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 72/100.
Not available for Smith & Nephew plc, so it is left out of the overall score, which averages the 5 of 6 dimensions that can be computed.
Smith & Nephew plc earns a strong 11.8% return on equity (ROE), meaning it generates $12 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 66/100. This is up from 7.8% the prior year.
Smith & Nephew plc scores 3.34, well above the 2.99 safe threshold. The largest contribution to the score comes from a market capitalization of $12.9B against total liabilities of $5.2B. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Smith & Nephew plc passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 3 leverage/liquidity signals pass, 1 of 2 operating efficiency signals passes.
For every $1 of reported earnings, Smith & Nephew plc generates $2.06 in operating cash flow ($1.3B OCF vs $625.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Smith & Nephew plc earns $5.67 in operating income for every $1 of interest expense ($794.0M vs $140.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Smith & Nephew plc generated $6.2B in revenue in fiscal year 2025. This represents an increase of 6.1% from the prior year.
Smith & Nephew plc's EBITDA was $1.4B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 5.0% from the prior year.
Smith & Nephew plc reported $625.0M in net income in fiscal year 2025. This represents an increase of 51.7% from the prior year.
Smith & Nephew plc earned $0.72 per diluted share (EPS) in fiscal year 2025. This represents an increase of 52.3% from the prior year.
Cash & Balance Sheet
Smith & Nephew plc held $557.0M in cash against $3.1B in long-term debt as of fiscal year 2025.
Not reported for fiscal year 2025.
Not reported for fiscal year 2025.
Margins & Returns
Smith & Nephew plc's gross margin was 68.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 1.6 percentage points from the prior year.
Smith & Nephew plc's operating margin was 12.9% in fiscal year 2025, reflecting core business profitability. This is up 1.6 percentage points from the prior year.
Smith & Nephew plc's net profit margin was 10.1% in fiscal year 2025, showing the share of revenue converted to profit. This is up 3.0 percentage points from the prior year.
Smith & Nephew plc's ROE was 11.8% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 4.0 percentage points from the prior year.
Capital Allocation
Smith & Nephew plc invested $296.0M in research and development in fiscal year 2025. This represents an increase of 2.4% from the prior year.
Smith & Nephew plc spent $502.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
Not reported for fiscal year 2025.
SNN Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $6.2B+6.1% | $5.8B+4.7% | $5.5B+6.4% | $5.2B+0.1% | $5.2B+14.3% | $4.6B-11.2% | $5.1B+4.8% | $4.9B+2.9% | $4.8B+2.1% | $4.7B+0.8% | $4.6B |
| Cost of Revenue | $2.0B+11.8% | $1.8B+2.0% | $1.7B+12.3% | $1.5B-0.2% | $1.5B+10.5% | $1.4B+4.3% | $1.3B+3.1% | $1.3B+4.0% | $1.2B-1.9% | $1.3B+11.3% | $1.1B |
| Gross Profit | $4.2B+3.6% | $4.0B+5.9% | $3.8B+3.9% | $3.7B+0.2% | $3.7B+16.0% | $3.2B-16.7% | $3.8B+5.4% | $3.6B+2.5% | $3.5B+3.5% | $3.4B-2.7% | $3.5B |
| R&D Expenses | $296.0M+2.4% | $289.0M-14.7% | $339.0M-1.7% | $345.0M-3.1% | $356.0M+16.0% | $307.0M+5.1% | $292.0M+18.7% | $246.0M+10.3% | $223.0M-3.0% | $230.0M+3.6% | $222.0M |
| Operating Income | $794.0M+20.9% | $657.0M+54.6% | $425.0M-5.6% | $450.0M-24.1% | $593.0M+101.0% | $295.0M-63.8% | $815.0M-5.6% | $863.0M-7.6% | $934.0M+16.6% | $801.0M+27.5% | $628.0M |
| EBITDA | $1.4B+5.0% | $1.3B+106.0% | $632.0M-3.5% | $655.0M-14.4% | $765.0M+64.2% | $466.0M-51.4% | $958.0M-1.8% | $976.0M-9.1% | $1.1B+9.7% | $979.0M-12.7% | $1.1B |
| Interest Expense | $140.0M-3.4% | $145.0M+9.8% | $132.0M+65.0% | $80.0M0.0% | $80.0M+29.0% | $62.0M-4.6% | $65.0M+10.2% | $59.0M+3.5% | $57.0M+9.6% | $52.0M+6.1% | $49.0M |
| Income Tax | $154.0M+79.1% | $86.0M+218.5% | $27.0M+125.0% | $12.0M-80.6% | $62.0Mn/m | -$202.0M-241.3% | $143.0M+21.2% | $118.0M+5.4% | $112.0M-59.7% | $278.0M+86.6% | $149.0M |
| Net Income | $625.0M+51.7% | $412.0M+56.7% | $263.0M+17.9% | $223.0M-57.4% | $524.0M+17.0% | $448.0M-25.3% | $600.0M-9.5% | $663.0M-13.6% | $767.0M-2.2% | $784.0M+91.2% | $410.0M |
| EPS (Basic) | $0.72+52.8% | $0.47+56.3% | $0.30+18.4% | $0.26-57.4% | $0.60+16.6% | $0.51-25.2% | $0.69 | $76.00 | $0.88-0.3% | $0.88+91.9% | $0.46 |
| EPS (Diluted) | $0.72+52.3% | $0.47+56.1% | $0.30+18.0% | $0.26-57.3% | $0.60+16.6% | $0.51-14.2% | $0.60 | $75.70 | $0.88-0.1% | $0.88+92.5% | $0.46 |
| Diluted Shares (Avg) | 873M-0.3% | 876M+0.3% | 873M0.0% | 873M-0.6% | 878M+0.1% | 877M0.0% | 877M | 876M | 875M-2.0% | 893M-0.7% | 899M |
Not reported in any period shown, so not listed: SG&A Expenses.
SNN Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $10.5B+1.0% | $10.4B+3.7% | $10.0B+0.2% | $10.0B-8.7% | $10.9B-0.8% | $11.0B+18.4% | $9.3B+15.4% | $8.1B+2.5% | $7.9B+7.1% | $7.3B+2.5% | $7.2B |
| Current Assets | $4.1B-7.2% | $4.4B+9.7% | $4.0B+4.5% | $3.9B-12.8% | $4.4B-5.1% | $4.7B+44.9% | $3.2B+4.6% | $3.1B+12.7% | $2.7B+8.0% | $2.5B | N/A |
| Cash & Equivalents | $557.0M-10.0% | $619.0M+105.0% | $302.0M-13.7% | $350.0M-72.8% | $1.3B-26.6% | $1.8B+581.3% | $257.0M-22.8% | $333.0M+114.8% | $155.0M+307.9% | $38.0M-62.7% | $102.0M |
| Inventory | $2.1B-11.3% | $2.4B-0.3% | $2.4B+8.6% | $2.2B+19.6% | $1.8B+9.0% | $1.7B+4.8% | $1.6B+15.7% | $1.4B+7.0% | $1.3B+4.8% | $1.2B+2.2% | $1.2B |
| Accounts Receivable | $1.4B+2.3% | $1.4B+6.2% | $1.3B+2.8% | $1.3B+6.8% | $1.2B+6.1% | $1.1B-16.0% | $1.3B+0.8% | $1.3B+4.7% | $1.3B+6.2% | $1.2B+4.1% | $1.1B |
| Goodwill | $3.1B+2.7% | $3.0B+1.1% | $3.0B-1.3% | $3.0B+1.4% | $3.0B+2.1% | $2.9B+5.0% | $2.8B+19.3% | $2.3B-1.4% | $2.4B+8.4% | $2.2B | N/A |
| Total Liabilities | $5.2B+1.6% | $5.1B+6.7% | $4.8B+1.3% | $4.7B-12.1% | $5.4B-6.6% | $5.7B+37.9% | $4.2B+30.5% | $3.2B-1.1% | $3.2B-4.8% | $3.4B+5.8% | $3.2B |
| Current Liabilities | $1.6B+4.2% | $1.5B-32.6% | $2.3B+32.4% | $1.7B-19.5% | $2.1B+26.2% | $1.7B+7.9% | $1.6B+6.8% | $1.5B+8.8% | $1.3B-0.1% | $1.3B | N/A |
| Non-Current Liabilities | $3.6B+0.4% | $3.6B+42.4% | $2.5B-16.5% | $3.0B-7.1% | $3.2B-20.4% | $4.0B+55.9% | $2.6B+50.8% | $1.7B-8.3% | $1.9B-7.9% | $2.0B | N/A |
| Long-Term Debt | $3.1B-0.4% | $3.1B+8.3% | $2.9B+7.8% | $2.7B-14.8% | $3.1B-9.9% | $3.5B+85.7% | $1.9B+44.3% | $1.3B-8.6% | $1.4B-9.0% | $1.6B | N/A |
| Total Equity | $5.3B+0.5% | $5.3B+0.9% | $5.2B-0.8% | $5.3B-5.5% | $5.6B+5.5% | $5.3B+2.7% | $5.1B+5.5% | $4.9B+5.0% | $4.6B+17.3% | $4.0B-0.2% | $4.0B |
| Retained Earnings | $5.3B+6.1% | $5.0B+2.3% | $4.9B-2.4% | $5.0B-3.8% | $5.2B+5.4% | $5.0B+2.2% | $4.8B+4.8% | $4.6B+6.8% | $4.3B+9.0% | $4.0B | N/A |
Not reported in any period shown, so not listed: Short-Term Investments, Long-Term Investments.
SNN Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $1.3B+30.2% | $987.0M+62.3% | $608.0M+29.9% | $468.0M-46.6% | $877.0M-6.2% | $935.0M-19.9% | $1.2B+25.5% | $931.0M-14.6% | $1.1B+28.4% | $849.0M-17.6% | $1.0B |
| Depreciation & Amortization | $573.0M-11.2% | $645.0M+211.6% | $207.0M+1.0% | $205.0M+19.2% | $172.0M+0.6% | $171.0M+19.6% | $143.0M+26.5% | $113.0M-19.3% | $140.0M-21.3% | $178.0M-63.9% | $493.0M |
| Investing Cash Flow | -$406.0Mn/m | -$569.0Mn/m | -$448.0Mn/m | -$472.0Mn/m | -$691.0Mn/m | -$606.0Mn/m | -$1.3Bn/m | -$378.0Mn/m | -$543.0Mn/m | -$383.0Mn/m | -$429.0M |
| Financing Cash Flow | -$955.0Mn/m | -$86.0Mn/m | -$200.0Mn/m | -$926.0Mn/m | -$645.0M-155.4% | $1.2B+16528.6% | $7.0Mn/m | -$371.0Mn/m | -$434.0Mn/m | -$529.0Mn/m | -$558.0M |
| Dividends Paid | $330.0M+0.9% | $327.0M0.0% | $327.0M0.0% | $327.0M-0.6% | $329.0M+0.3% | $328.0M+3.1% | $318.0M-0.9% | $321.0M+19.3% | $269.0M-3.6% | $279.0M+2.6% | $272.0M |
| Share Buybacks | $502.0M | N/A | N/A | $158.0M | N/A | $16.0M-74.6% | $63.0M+31.3% | $48.0M-7.7% | $52.0M-85.9% | $368.0M+377.9% | $77.0M |
Not reported in any period shown, so not listed: Stock-Based Compensation, Capital Expenditures, Free Cash Flow.
SNN Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 68.0%-1.6pp | 69.6%+0.8pp | 68.8%-1.6pp | 70.5%+0.1pp | 70.4%+1.0pp | 69.4%-4.6pp | 74.0%+0.4pp | 73.5%-0.3pp | 73.8%+1.0pp | 72.8%-2.6pp | 75.3% |
| Operating Margin | 12.9%+1.6pp | 11.3%+3.7pp | 7.7%-1.0pp | 8.6%-2.7pp | 11.4%+4.9pp | 6.5%-9.4pp | 15.9%-1.7pp | 17.6%-2.0pp | 19.6%+2.4pp | 17.2%+3.6pp | 13.6% |
| Net Margin | 10.1%+3.0pp | 7.1%+2.4pp | 4.7%+0.5pp | 4.3%-5.8pp | 10.1%+0.2pp | 9.8%-1.9pp | 11.7%-1.8pp | 13.5%-2.6pp | 16.1%-0.7pp | 16.8%+7.9pp | 8.8% |
| Return on Equity | 11.8%+4.0pp | 7.8%+2.8pp | 5.0%+0.8pp | 4.2%-5.2pp | 9.4%+0.9pp | 8.5%-3.2pp | 11.7%-1.9pp | 13.6%-2.9pp | 16.5%-3.3pp | 19.8%+9.5pp | 10.3% |
| Return on Assets | 6.0%+2.0pp | 4.0%+1.4pp | 2.6%+0.4pp | 2.2%-2.6pp | 4.8%+0.7pp | 4.1%-2.4pp | 6.5%-1.8pp | 8.2%-1.5pp | 9.8%-0.9pp | 10.7%+5.0pp | 5.7% |
| Current Ratio | 2.57-0.3x | 2.89+1.1x | 1.77-0.5x | 2.25+0.2x | 2.08-0.7x | 2.76+0.7x | 2.060.0x | 2.10+0.1x | 2.03+0.2x | 1.88 | N/A |
| Debt-to-Equity | 0.590.0x | 0.590.0x | 0.550.0x | 0.51-0.1x | 0.56-0.1x | 0.66+0.3x | 0.37+0.1x | 0.270.0x | 0.31-0.1x | 0.40 | N/A |
| Liabilities-to-Equity | 0.980.0x | 0.97+0.1x | 0.910.0x | 0.90-0.1x | 0.96-0.1x | 1.09+0.3x | 0.81+0.2x | 0.650.0x | 0.69-0.2x | 0.860.0x | 0.81 |
| Asset Turnover | 0.590.0x | 0.560.0x | 0.560.0x | 0.520.0x | 0.48+0.1x | 0.41-0.1x | 0.55-0.1x | 0.610.0x | 0.610.0x | 0.640.0x | 0.65 |
Not reported in any period shown, so not listed: FCF Margin.
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Smith & Nephew plc SNN | FY2025 | $6.2B | $625.0M | 10.1% | $12.9B | 59/100 |
| Zimmer Biomet Holdings, Inc. ZBH | FY2025 | $8.2B | $705.1M | 8.6% | $18.8B | 59/100 |
| KONINKLIJKE PHILIPS N.V. PHG | FY2025 | $20.9B | $1.1B | 5.0% | $26.3B | 35/100 |
| STERIS plc STE | FY2026 | $5.9B | $782.3M | 13.2% | $22.6B | 66/100 |
| Insulet Corporation PODD | FY2025 | $2.7B | $247.1M | 9.1% | $10.3B | 74/100 |
| Penumbra, Inc. PEN | FY2025 | $1.4B | $177.7M | 12.7% | $12.8B | 68/100 |
Where Smith & Nephew plc Ranks
Frequently Asked Questions
What is Smith & Nephew plc's annual revenue?
Smith & Nephew plc (SNN) reported $6.2B in total revenue for fiscal year 2025. This represents a 6.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Smith & Nephew plc's revenue growing?
Smith & Nephew plc (SNN) revenue grew by 6.1% year-over-year, from $5.8B to $6.2B in fiscal year 2025.
Is Smith & Nephew plc profitable?
Yes, Smith & Nephew plc (SNN) reported a net income of $625.0M in fiscal year 2025, with a net profit margin of 10.1%.
What is Smith & Nephew plc's EBITDA?
Smith & Nephew plc (SNN) had EBITDA of $1.4B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Smith & Nephew plc have?
As of fiscal year 2025, Smith & Nephew plc (SNN) had $557.0M in cash and equivalents against $3.1B in long-term debt.
What is Smith & Nephew plc's gross margin?
Smith & Nephew plc (SNN) had a gross margin of 68.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Smith & Nephew plc's operating margin?
Smith & Nephew plc (SNN) had an operating margin of 12.9% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Smith & Nephew plc's net profit margin?
Smith & Nephew plc (SNN) had a net profit margin of 10.1% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Smith & Nephew plc's return on equity (ROE)?
Smith & Nephew plc (SNN) has a return on equity of 11.8% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Smith & Nephew plc's operating cash flow?
Smith & Nephew plc (SNN) generated $1.3B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Smith & Nephew plc's total assets?
Smith & Nephew plc (SNN) had $10.5B in total assets as of fiscal year 2025, including both current and long-term assets.
How much does Smith & Nephew plc spend on research and development?
Smith & Nephew plc (SNN) invested $296.0M in research and development during fiscal year 2025.
What is Smith & Nephew plc's current ratio?
Smith & Nephew plc (SNN) had a current ratio of 2.57 as of fiscal year 2025, which is generally considered healthy.
What is Smith & Nephew plc's debt-to-equity ratio?
Smith & Nephew plc (SNN) had a debt-to-equity ratio of 0.59 as of fiscal year 2025. We compute it as long-term debt divided by total shareholder equity, where long-term debt is the noncurrent part of the company's borrowings, so debt due within the next twelve months is not counted.
What is Smith & Nephew plc's liabilities-to-equity ratio?
Smith & Nephew plc (SNN) had a liabilities-to-equity ratio of 0.98 as of fiscal year 2025, which is total liabilities divided by total shareholder equity. Total liabilities counts every obligation on the balance sheet (payables, deposits, insurance reserves and deferred taxes as well as borrowings), so this ratio usually runs well above debt-to-equity.
What is Smith & Nephew plc's return on assets (ROA)?
Smith & Nephew plc (SNN) had a return on assets of 6.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Smith & Nephew plc's P/E ratio?
Smith & Nephew plc (SNN) trades at 20.6x earnings, its market capitalization divided by $625.0M net income, FY2025. The market capitalization is $12.9B as of Oct 23, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Smith & Nephew plc's price-to-sales ratio?
Smith & Nephew plc (SNN) trades at 2.1x sales, its market capitalization divided by $6.2B revenue, FY2025. The market capitalization is $12.9B as of Oct 23, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Smith & Nephew plc's Altman Z-Score?
Smith & Nephew plc (SNN) has an Altman Z-Score of 3.34, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Smith & Nephew plc's Piotroski F-Score?
Smith & Nephew plc (SNN) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Smith & Nephew plc's earnings high quality?
Smith & Nephew plc (SNN) has an earnings quality ratio of 2.06x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Smith & Nephew plc cover its interest payments?
Smith & Nephew plc (SNN) has an interest coverage ratio of 5.67x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Smith & Nephew plc?
Smith & Nephew plc (SNN) scores 59 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is the average of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. For Smith & Nephew plc it averages the 5 of 6 dimensions that can be computed; the others are left out rather than counted as zero. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.