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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 5 - PUIG BRANDS): Static Financial Liquidity Ratios (13 Tasks)
Guided Exercise (Team 5 - PUIG BRANDS): Static Financial Liquidity Ratios (13 Tasks)
Goal: Check Puig Brands' short-term static financial liquidity (Current Ratio [CR], Quick Ratio [QR], and Cash Ratio [CashR]), diagnose its luxury perfume inventory buffer, 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 283 of Report in EUR thousand, or p. 77 in EUR million)
STEP 0: OBTAIN THE ANNUAL REPORT HERE
STEP 1: Extract 7 Balance Sheet Items in 2024 (in EUR thousand, 2024 column):
STEP 1A: Short-Term Working Capital Items (4 Items):
[CA] TOTAL CURRENT ASSETS (Page 283, middle of Assets: Total current assets): 2,453,478
[INV] INVENTORIES (Page 283, under Current assets: Inventories): 720,312
[CASH] CASH AND CASH EQUIVALENTS (Page 283, above Total current assets: Cash and cash equivalents): 882,646
[CL] TOTAL CURRENT LIABILITIES (Page 283, bottom of Liabilities: Total current liabilities): 1,803,310
STEP 1B: Long-Term Balance Sheet Items (3 Items):
[NCA] NON-CURRENT ASSETS (Page 283, top section: Total non-current assets): 6,149,722
[E] SHAREHOLDERS' EQUITY (Page 283, middle grey row: Total equity): 3,537,684
[LTD] NON-CURRENT LIABILITIES (Page 283, middle section: Total non-current liabilities): 3,262,206
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% = (2,453,478 / 1,803,310) * 100% = 136.1% -> 136% (1.36x) -> OPTIMAL (120%-200%)!
Quick Liquidity Ratio / Acid-Test -- QR (Norm >= 100%, or >= 1.0x): (([CA] - [INV]) / [CL]) * 100% = ((2,453,478 - 720,312) / 1,803,310) * 100% = 96.1% -> 96% (0.96x) -> BORDERLINE (< 100%)
Cash Liquidity Ratio -- CashR (Norm >= 20%, or >= 0.2x): ([CASH] / [CL]) * 100% = (882,646 / 1,803,310) * 100% = 48.9% -> 49% (0.49x) -> SAFE (>= 20%)!
Inventory Share in Current Assets -- INV / CA (%): ([INV] / [CA]) * 100% = (720,312 / 2,453,478) * 100% = 29.4% -> 29% (Quick Assets Share = 71% -- luxury fragrances and cosmetics stock!).
STEP 2B: 2 Long-Term Balance Sheet Rules (2024): 5. Golden Balance Sheet Rule -- E / NCA (Norm >= 100%, or >= 1.0x): ([E] / [NCA]) * 100% = (3,537,684 / 6,149,722) * 100% = 57.5% -> 58% (0.58x) -> LOW (< 100%) (Acquired luxury brands and Goodwill in [NCA] are co-financed with long-term debt). 6. Silver Balance Sheet Rule / Maturity Matching -- PC / NCA (Norm >= 100%, where Permanent Capital [PC] = [E] + [LTD]): (([E] + [LTD]) / [NCA]) * 100% = ((3,537,684 + 3,262,206) / 6,149,722) * 100% = 110.6% -> 111% (1.11x) -> PASS! (Permanent Capital comfortably covers Non-Current Assets; positive Net Working Capital NWC = [CA] - [CL] > 0).
Your Turn: Task for Team 5 (Calculate 2025 -- 13 Tasks!) Look at the 2025 column on Page 283 of the Report (in EUR thousand, or p. 77 in EUR million) 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 EUR thousand):
[CA] TOTAL CURRENT ASSETS (Page 283, middle of Assets: Total current assets) = ....................
[INV] INVENTORIES (Page 283, under Current assets: Inventories) = ....................
[CASH] CASH AND CASH EQUIVALENTS (Page 283, above Total current assets: Cash and cash equivalents) = ....................
[CL] TOTAL CURRENT LIABILITIES (Page 283, bottom of Liabilities: Total current liabilities) = ....................
STEP 1B: Find the 3 Long-Term Balance Sheet Items for 2025 (in EUR thousand):
[NCA] NON-CURRENT ASSETS (Page 283, top section: Total non-current assets) = ....................
[E] SHAREHOLDERS' EQUITY (Page 283, middle grey row: Total equity) = ....................
[LTD] NON-CURRENT LIABILITIES (Page 283, middle section: 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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