ROCHE HOLDING

STATEMENT ANALYSIS

GROUP 12

DEVESH LAHOTI – 28046

DHRUTI U PARIKH – 28047

DINESH KUMAR – 28048

DIVYA PRAKASH – 28049

ROCHE HOLDING AG

•  Swiss multinational healthcare company that operates worldwide under two divisions:
Pharmaceuticals and Diagnostics
• Roche Holding AG operates as a research healthcare company
• The company ranked No. 8 overall and was the top company in the health and
pharmaceutical services industry
INCOME STATEMENT – PROFITABILITY

• Revenue from operations has increased by 7.68 %

• There is a decline in total income before taxes by 3.17%

• From the statement it can be analysed that there is an increase in operating expenses by 12.24%. This increase
in expense is majorly due to a heavy restructuring charges which has increase by 49.45% from the previous year.
• We can also see that expenses are more i.e, the operating expenses have increased by
12.24% while the net income decreased by -2.59 % from the previous year
• We can also notice that the unusual expenses have decreased by 11.63% compared to
previous year as there were not many major expenses.
• Therefore, due to increase in expenses we can observe that the profits after taxes are
negative at 0.86% which reflects the company didn’t have enough income for this year.
BALANCE SHEET – FINANCIAL POSITION

• The total current assets have increased by 8.17% and total assets increased by 7.17%
• The total current liabilities increased by 51.26% and total liabilities increased by 36.20%
• Fixed assets grow by 4.89%, however the efficient utilization led to a higher revenue
growth compared to last year which is 7.68%
• There is no enough war chest available to pay of the company’s debts which is very high
compared to the previous year which is at 111.22%
• However, the increase in liability is much more than the increase in assets which
signifies a sign of asset deficiency and an indicator of the company may default on its
obligations and be headed for bankruptcy. This difference is majorly due to an increase in
the total debts.
• In the statement, it is also observed that the company’s retained earnings are negative
which means that they do not have enough surplus in profits for paying all their costs or
to pay dividends.
 OVERALL ASSESSMENT

• Efficient utilization of the fixed assets gave a higher revenue growth.

• There is no enough war chest for the company to pay of it’s debts which are very high
• The profits are also at a decline (Negative profit before taxes)
• Working capital of the company turns negative(2021) from positive(2020).
• Goodwill value increases by 16.86%. This indicates that company is having a good brand
image among consumers.
• Thus, at an overall perspective we can say that the company’s financial position is not stable
due to high debts.