Finance & AccountingBeginner 1 to 2 hours

Ratio Analysis from Sample Statements

Turn two years of financials into a one-page investment memo.

The Scenario

A small retail company has posted its financial statements for the last two years. A mentor asks you to write a one-page memo summarising what the numbers say about the business and whether you would lend it working capital.

The Brief

You can invent plausible numbers for the two years as long as they are internally consistent. Calculate at least four ratios and interpret them in plain English.

Deliverables

  • A table of at least 4 ratios for both years, with the formulas visible
  • One paragraph interpreting the trends across the two years
  • A clear yes, no, or conditional recommendation on lending working capital, with your reasoning
  • One number you would want to see before finalising your recommendation

Submission Guidance

Interpretation beats calculation. A correctly calculated ratio with no insight earns fewer marks than a rough estimate with sharp analysis.

Submit Your Work

Your submission is graded against the rubric on the right. If you pass, you get a public Badge URL you can share on LinkedIn. There is no draft save, so work offline first and paste your finished response here.

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