Financial Analysis of Molina

Healthcare
Yousif Ali
Nishat Dhillon
Padma Swamy
Tay Za Kyi Win

Group 6
Financial Analysis of Molina
Healthcare
Yousif Ali
Nishat Dhillon
Padma Swamy
Tay Za Kyi Win

Group 6
Introduction

Services offered at Molina Healthcare are

designed to meet health care needs of
individuals and low-income families.
Molina Healthcare also run Molina Medicaid
solutions.
The program offers a core tool of information
technology that is used to support the state
administration of Medicaid and other programs.
The Balance Sheet
Total Assets

271% in total assets

Liquid Assets

Liquid assets increased from 60% to 72%

from 2011 to 2014
Liability to Equity

Debt to Equity-
Debt Molina
to Equity Healthcare
- Molina 20112014
Healthcare

Equity; 23%
Equity; 46%
Liability ; 54%
Liability ; 77%
Balance Sheet Summary

Overall increase in assets

Increase in debt when compared to equity

Financial Analysis
(Income Statement)

Totalrevenue shows an increasing trend with a

11 % increase from 2012 to 2013 and a 47%
increase from 2013 to 2014.

Expenses increases by 50% from 2013 - 2014.

Financial Analysis
Net income increased to $ 62.6 million in 2014,
from $44.8 million in 2013 and from $12.9 million
in 2012
Was due to increases in enrollment and revenue
and higher medical margin
Cash Flow Analysis

2012 2013 2014

Operating Activities $347.8 M $157.7 M $870.2 M

Financing Activities $47.7 M $493.4 M $78.6 M

Investing Activities $93.6 M $543.3 M $535.7 M

Financial Ratio Analysis
Ratio Industry Average
current ratio
2014 1.49 1.6
2013 1.57
2012 1.62

ROE
2014 6% 13.24
2013 6%
2012 1%

ROA
2014 1.30%
2013 1.70%
2012 0.50%

Debt-to-equity
2014 89% 101.09%
2013 67.50%
2012 33.45%

operation margin 3.10%
2%
2%
0.60%
Recommendation

Under continued Medicaid expansion

Increase in revenue with higher medical margin
and good cost control
Aware of debt ratio and financial leverage
We recommend your investment !!!!
 Your
Attention

Q&
A
References

Rodgers, P. (2008). Financial analysis. Oxford:

CIMA.
Robinson, T. (2009). International financial
statement analysis. Hoboken, N.J.: John Wiley &
Sons.
Vogel, H. (2007). Entertainment industry
economics. Cambridge: Cambridge University
Press.