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Module 5: Study of Short-Term and Long-Term Financial Static Liquidity
Module 5: Study of Short-Term and Long-Term Financial Static Liquidity
This module focuses on corporate survival and balance sheet equilibrium. In the short run, we evaluate the company's ability to meet its immediate financial obligations over the next 12 months by comparing Current Assets [CA] against Current Liabilities [CL]. By calculating the Current Ratio (CR = CA / CL), Quick Ratio (QR = [CA - INV] / CL), Cash Ratio (CashR = CASH / CL), and Inventory Share (INV / CA), you will assess the quality of each company's liquidity cushion. In the long run, we examine structural solvency through the Golden (E / NCA >= 100%) and Silver (PC / NCA >= 100%) Balance Sheet Rules (Maturity Matching Principle) to ensure fixed assets are safely funded by permanent capital.
STEP 0: Recap of Module 4 - Right Side of the Balance Sheet
STEP 0: Recap of Module 4 - Right Side of the Balance Sheet
(Financing Rules: E / TD & Permanent Capital PC)
(Financing Rules: E / TD & Permanent Capital PC)
Quickly review how our 5 companies finance their operations on the right side of the balance sheet before we connect Assets and Liabilities in Module 5.
STEP 1: Theoretical Foundations, Interactive Balance Sheet Map
STEP 1: Theoretical Foundations, Interactive Balance Sheet Map
Click through the 6 tabs in Part A to see which blocks of the Balance Sheet form the numerator and denominator of each short-term and long-term liquidity ratio, or switch to Part B to review the 4 course textbooks (Brigham & Houston, 2009; Friedlob & Schleifer, 2003; Bragg, 2014; Lee, Lee & Lee, 2009).
STEP 2: Guided Group Work - Live Static Liquidity Calculator
STEP 2: Guided Group Work - Live Static Liquidity Calculator
Open your company's 2025 Annual Report PDF, extract the 7 balance sheet items ([CA] Current Assets, [INV] Inventories, [CASH] Cash, [CL] Current Liabilities), and calculate the 6 liquidity ratios in whole percentages.
STEP 3: Cross-Company Comparison & Industry Context
STEP 3: Cross-Company Comparison & Industry Context
Compare the 2025 liquidity ratios across all 5 companies and discover why deviations from textbook norms (740% CR in CD PROJEKT vs. 62% CR in Biedronka) reflect industry economics.
STEP 4: Executive Case Studies
STEP 4: Executive Case Studies
Short-Term Liquidity Trap (Case 1) & Long-Term Maturity Matching (Case 2)
Short-Term Liquidity Trap (Case 1) & Long-Term Maturity Matching (Case 2)
Rate the 4 management rescue strategies (0 to 5 points) in both rounds and click the green submit button at the bottom to lock in your team's score on the live leaderboard.
STEP 5: Module 5 Master Summary -
STEP 5: Module 5 Master Summary -
Short-Term & Long-Term Static Liquidity Synthesis
Short-Term & Long-Term Static Liquidity Synthesis
Review the complete 6-ratio liquidity matrix across all 5 companies (CR, QR, CashR, INV/CA, Golden Rule E/NCA, and Silver Rule PC/NCA) and the key takeaways of Module 5.
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