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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.
📋 WORKFLOW FOR TEAMS 1–5: Paper First, Screen Second!
Use your printed paper worksheet as a scratchpad to extract the Y2025 figures from the PDF report and calculate your ratios. Once you have written down and rounded your answers on paper (whole numbers only, no decimals!), transfer them into the interactive online form below and click Check until every box turns 100% Green! Keep your paper worksheet ready for our live classroom comparison!
Guided Exercise (Team 1 - CD PROJEKT): Static Financial Liquidity Ratios
Guided Exercise (Team 1 - CD PROJEKT): Static Financial Liquidity Ratios
Goal: Check CD PROJEKT's short-term static financial liquidity (Current Ratio [CR], Quick Ratio [QR], and Cash Ratio [CashR]), diagnose whether the company experiences under-liquidity or over-liquidity, examine the Inventory Share [INV / CA], and calculate its long-term solvency using the Golden [E / NCA] and Silver [PC / NCA] Balance Sheet Rules.
Worked Example: Step-by-Step for 2024 (Pages 8 & 9 of the PDF)
STEP 0: OBTAIN THE ANNUAL REPORT HERE
STEP 1: Extract 7 Balance Sheet Items in 2024 (in PLN thousand, 31.12.2024 column):*
STEP 1A: Short-Term Working Capital Items (4 Items):
[CA] TOTAL CURRENT ASSETS (Page 8, middle section subtotal): 1,452,274
[INV] INVENTORIES (Page 8, first line under Current assets): 1,802
[CASH] CASH AND CASH EQUIVALENTS (Page 8, bottom line of Current assets): 124,886
[CL] TOTAL CURRENT LIABILITIES (Page 9, lower section subtotal): 229,805(Bonus check: On Page 8, above Cash and cash equivalents, CD PROJEKT also holds Bank deposits over 3 months of 522,524 and Other current financial assets of 540,620 -- massive financial reserves!)
STEP 1B: Long-Term Balance Sheet Items (3 Items):
[NCA] NON-CURRENT ASSETS (Page 8, top row subtotal): 1,574,164
[E] SHAREHOLDERS' EQUITY (Page 9, top row subtotal): 2,774,059
[LTD] NON-CURRENT LIABILITIES (Page 9, middle section subtotal): 22,574
STEP 2: How All 6 Static Liquidity Ratios are calculated (2024 Example):
STEP 2A: 4 Short-Term Liquidity Ratios (2024):
Current Liquidity Ratio -- CR (Norm: 120% to 200%, or 1.2x to 2.0x): ([CA] / [CL]) * 100% = (1,452,274 / 229,805) * 100% = 632.0% -> 632% (6.32x) -> OVER-LIQUID (> 200%)!
Quick Liquidity Ratio / Acid-Test -- QR (Norm >= 100%, or >= 1.0x): (([CA] - [INV]) / [CL]) * 100% = ((1,452,274 - 1,802) / 229,805) * 100% = 631.2% -> 631% (6.31x) -> PASS!
Cash Liquidity Ratio -- CashR (Norm >= 20%, or >= 0.2x): ([CASH] / [CL]) * 100% = (124,886 / 229,805) * 100% = 54.3% -> 54% (0.54x) -> SAFE!
Inventory Share in Current Assets -- INV / CA (%): ([INV] / [CA]) * 100% = (1,802 / 1,452,274) * 100% = 0.1% -> 0% (Quick Assets Share = 100% -- digital distribution model requires almost zero physical inventory!).
STEP 2B: 2 Long-Term Balance Sheet Rules (2024): 5. Golden Balance Sheet Rule -- E / NCA (Norm >= 100%, or >= 1.0x): ([E] / [NCA]) * 100% = (2,774,059 / 1,574,164) * 100% = 176.2% -> 176% (1.76x) -> PASS! (Shareholders' Equity fully covers Non-Current Assets with a 76% surplus!). 6. Silver Balance Sheet Rule / Maturity Matching -- PC / NCA (Norm >= 100%, where Permanent Capital [PC] = [E] + [LTD]): (([E] + [LTD]) / [NCA]) * 100% = ((2,774,059 + 22,574) / 1,574,164) * 100% = 177.7% -> 178% (1.78x) -> PASS! (Positive Net Working Capital: NWC = [CA] - [CL] > 0).
Your Turn: Task for Team 1 (Calculate 2025 -- 13 Tasks!) Look at the 31.12.2025 column on Pages 8 & 9 and complete the exact same steps for 2025 (enter whole numbers and round percentages to whole numbers, no decimals):
STEP 1A: Find the 4 Short-Term Working Capital Items for 2025 (in PLN thousand):
[CA] TOTAL CURRENT ASSETS (Page 8, middle section: CURRENT ASSETS) = ....................
[INV] INVENTORIES (Page 8, first line under Current assets: Inventories) = ....................
[CASH] CASH AND CASH EQUIVALENTS (Page 8, bottom of Current assets) = ....................
[CL] TOTAL CURRENT LIABILITIES (Page 9, lower section: CURRENT LIABILITIES) = ....................
STEP 1B: Find the 3 Long-Term Balance Sheet Items for 2025 (in PLN thousand):
[NCA] NON-CURRENT ASSETS (Page 8, top row: NON-CURRENT ASSETS) = ....................
[E] SHAREHOLDERS' EQUITY (Page 9, top row: EQUITY) = ....................
[LTD] NON-CURRENT LIABILITIES (Page 9, middle section: NON-CURRENT LIABILITIES) = ....................
STEP 2A: Calculate the 4 Short-Term Liquidity Ratios for 2025 (whole %, no decimals):
Current Ratio -- CR (%) = ([CA]_2025 / [CL]_2025) * 100% = .......... % (Low <120%, Optimal 120%-200%, or Over-liquid >200%?)
Quick Ratio -- QR (%) = (([CA]_2025 - [INV]_2025) / [CL]_2025) * 100% = .......... % (Pass >= 100% or Low?)
Cash Ratio -- CashR (%) = ([CASH]_2025 / [CL]_2025) * 100% = .......... % (Safe >= 20% or Low?)
Inventory Share -- INV / CA (%) = ([INV]_2025 / [CA]_2025) * 100% = .......... % (Quick Assets = 100% - #4)
STEP 2B: Calculate the 2 Long-Term Balance Sheet Rules for 2025 (whole %, no decimals): 5. Golden Balance Sheet Rule -- E / NCA (%) = ([E]_2025 / [NCA]_2025) * 100% = .......... % (Pass >= 100% or Low < 100%?) 6. Silver Balance Sheet Rule -- PC / NCA (%) = (([E]_2025 + [LTD]_2025) / [NCA]_2025) * 100% = .......... % (Pass >= 100% / Positive NWC > 0 or Low?)
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