Financial Performance and Strategic Evaluation of Novo Nordisk A/S: A comprehensive analysis

Abstract

This paper examines the company's strategic positioning and financial outcomes over the period from 2021 to 2023. Chapter 1 provides an in-depth analysis of the business environment, employing PESTLE and Porter’s Five Forces to evaluate external challenges and opportunities, complemented by a SWOT analysis for internal assessment. Chapter 2 conducts a thorough financial analysis, including profitability and liquidity ratios, to benchmark Novo Nordisk against key industry competitors. Chapter 3 assesses the investment performance using Jensen's Alpha, Treynor Ratio, and T-Squared metrics, offering insights into the stock's risk-adjusted return profile. The study concludes with strategic recommendations in Chapter 4, focusing on sustaining leadership in diabetes care, leveraging R&D, enhancing digital health initiatives, and reinforcing financial and operational resilience. The findings affirm Novo Nordisk’s robust market positioning and provide actionable insights to navigate future challenges.