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GROUP 2: ORLEN S.A. (WSE: PKN)
Micro-Exercise 2: The Industrial "Asset-Heavy" Powerhouse (IAS 16 Property, Plant & Equipment)
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 2 - ORLEN GROUP): Static Financial Liquidity Ratios
Guided Exercise (Team 2 - ORLEN GROUP): Static Financial Liquidity Ratios
Goal: Check ORLEN'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 (Page 6 of the PDF)
STEP 0: OBTAIN THE ANNUAL REPORT HERE
STEP 1: Extract 7 Balance Sheet Items in 2024 (in PLN million, 31/12/2024 column):
STEP 1A: Short-Term Working Capital Items (4 Items):
[CA] TOTAL CURRENT ASSETS (Page 6, middle row: Total Current assets): 68,543
[INV] INVENTORIES (Page 6, first line under Current assets: Inventories): 21,739
[CASH] CASH AND CASH EQUIVALENTS (Page 6, inside Current assets: Cash): 11,042
[CL] TOTAL CURRENT LIABILITIES (Page 6, lower section: Total Current liabilities): 60,321
STEP 1B: Long-Term Balance Sheet Items (3 Items):
[NCA] NON-CURRENT ASSETS (Page 6, top section: Total Non-current assets): 186,852
[E] SHAREHOLDERS' EQUITY (Page 6, middle section: Total equity): 146,750
[LTD] NON-CURRENT LIABILITIES (Page 6, lower section: Total Non-current liabilities): 48,324
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% = (68,543 / 60,321) * 100% = 113.6% -> 114% (1.14x) -> SLIGHTLY LOW (< 120%)
Quick Liquidity Ratio / Acid-Test -- QR (Norm >= 100%, or >= 1.0x): (([CA] - [INV]) / [CL]) * 100% = ((68,543 - 21,739) / 60,321) * 100% = 77.6% -> 78% (0.78x) -> LOW (< 100%)
Cash Liquidity Ratio -- CashR (Norm >= 20%, or >= 0.2x): ([CASH] / [CL]) * 100% = (11,042 / 60,321) * 100% = 18.3% -> 18% (0.18x) -> SLIGHTLY LOW (< 20%)
Inventory Share in Current Assets -- INV / CA (%): ([INV] / [CA]) * 100% = (21,739 / 68,543) * 100% = 31.7% -> 32% (Quick Assets Share = 68% -- strategic crude oil and fuel reserves!).
STEP 2B: 2 Long-Term Balance Sheet Rules (2024): 5. Golden Balance Sheet Rule -- E / NCA (Norm >= 100%, or >= 1.0x): ([E] / [NCA]) * 100% = (146,750 / 186,852) * 100% = 78.5% -> 79% (0.79x) -> LOW (< 100%) (Heavy industrial infrastructure requires additional long-term debt financing). 6. Silver Balance Sheet Rule / Maturity Matching -- PC / NCA (Norm >= 100%, where Permanent Capital [PC] = [E] + [LTD]): (([E] + [LTD]) / [NCA]) * 100% = ((146,750 + 48,324) / 186,852) * 100% = 104.4% -> 104% (1.04x) -> PASS! (Permanent Capital fully covers Non-Current Assets; positive Net Working Capital NWC = [CA] - [CL] > 0).
Your Turn: Task for Team 2 (Calculate 2025 -- 13 Tasks!) Look at the 31/12/2025 column on Page 6 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 million):
[CA] TOTAL CURRENT ASSETS (Page 6, Total Current assets) = ....................
[INV] INVENTORIES (Page 6, first line under Current assets: Inventories) = ....................
[CASH] CASH AND CASH EQUIVALENTS (Page 6, under Current assets: Cash) = ....................
[CL] TOTAL CURRENT LIABILITIES (Page 6, Total Current liabilities) = ....................
STEP 1B: Find the 3 Long-Term Balance Sheet Items for 2025 (in PLN million):
[NCA] NON-CURRENT ASSETS (Page 6, Total Non-current assets) = ....................
[E] SHAREHOLDERS' EQUITY (Page 6, Total equity) = ....................
[LTD] NON-CURRENT LIABILITIES (Page 6, Total 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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