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Balance Sheet Detective

Published 25 May 2011
Reference 5791
Region Global
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Prizes & Awards

2018 Case Centre Best-selling Case in Finance, Accounting and Control

2017 Case Centre Best-selling Case in Finance, Accounting and Control

2016 Case Centre Best Selling Case in Finance, Accounting and Control

2015 Case Centre Best-selling Case in Finance, Accounting and Control

Summary

This is an international version of the classic ratio detective exercise that is found in many US-based textbooks and other case series. The objective is to initiate students into balance sheet analysis via the use of common-size balance sheets. The case helps students to understand how the economics of the firm are revealed in the firm’s financial statements. Effectively employed, it can also teach students to think about the links between asset composition and financial structures, and how these relate to industry economics.

Teaching objectives

The objective is to initiate students into balance sheet analysis via the use of common-size balance sheets. The case helps students to understand how the economics of the firm are revealed in the firm’s financial statements. Effectively employed, it can also teach students to think about the links between asset composition and financial structures, and how these relate to industry economics.

Keywords
  • common size balance sheet
  • financial statement analysis
  • ratio analysis
  • RD0511
  • AR2011
  • AR1011
  • IAF 10/11
  • IAF 2520527