This case raises several dilemmas related to a company's business model and the relationship between fiscal metrics and strategy. In particular, the case needs students to match a company with a financial profile that consists of a common-size balance sheet and added selected ratios. Students are compelled to contemplate the many different ways a company's business model and strategy impact the financial statements, including effects on gross margin, net margin, inventories, R & D expenditures, and working capital ratios.
The case is excellent when used as a capstone exercise after a discussion of financial statement ratios and their use in financial statement analysis. The case has been used in both the first year Financial Reporting class and the Financial Statement Analysis elective in the Babson MBA program. Moreover, the case has been used in a variety of executive education programs that contain sessions on financial evaluation.
PUBLICATION DATE: May 01, 2016 PRODUCT #: BAB233-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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