CSI Financial Statements 2014: Using Financial Ratios to Identify Companies

Name: CSI Financial Statements 2014: Using Financial Ratios to Identify Companies (English version)
SKU: BAB-233

Wilson, Peter

Product #:BAB-233

Supplier:Babson College

Discipline:Finance

Details:Case (PDF) • 3 pages • 2016-05-01

Subjects:

Financial analysis Financial performance measurement Financial statements Finance and investing Accounting Finance and investing

Your Price:

$9.71

Purchase this material with a free Educator Account and enjoy more benefits:

Free Educator Copy
Free Teaching Notes
Build your coursepack
Discounted academic price

This case raises a number of issues related to the relationship between financial metrics and a company's business model and strategy. Specifically, the case requires students to match a company with a financial profile that consists of a common-size balance sheet and additional selected ratios. Students are forced to consider the many different ways a company's business model and strategy impact the financial statements, including effects on gross margin, net margin, inventories, R & D expenditures, and working capital ratios. The case is excellent when used as a capstone exercise after a discussion of financial statement ratios and their use in financial statement analysis. The case has been used in both the first year Financial Reporting course and the Financial Statement Analysis elective in the BAB-son MBA program. In addition, the case has been used in many different executive education programs that include sessions on financial analysis.

Learning Objectives

1. Recognize how industry differences lead to different balance sheet and income statement relationships. 2. Comprehend the impact of a company's business model on its financial statements. 3. Learn to anticipate how different managerial decisions are reflected in the financial ratios. 4. Understand how non-operating gains and losses impact profitability ratios.