Roche Holding AG is a Swiss healthcare company with two divisions: Pharmaceuticals and Diagnostics. While revenue increased 7.68%, total income before taxes declined 3.17% due to a 12.24% increase in operating expenses from restructuring charges. Profits after taxes were negative at 0.86% due to rising expenses outpacing income growth. Total assets grew 7.17% but liabilities increased more at 36.20%, and retained earnings were negative, indicating insufficient profits and surplus. Therefore, the company's financial position is assessed as unstable due to high debt levels outpacing asset growth.

1. ROCHE HOLDING
STATEMENT ANALYSIS
GROUP 12
DEVESH LAHOTI – 28046
DHRUTI U PARIKH – 28047
DINESH KUMAR – 28048
DIVYA PRAKASH – 28049

2. 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

3. 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.

4. • 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.

5. 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%

6. • 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
all their costs or to pay dividends.

7. 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.