Management Accounting – Immersion Report Guidelines

Deadline for submission is 9th November, 2019 Till 9.30 Morning.

Reports which is mailed after this time won’t be accepted. Submission will be on my
mail id.

✓ Balance sheet Analysis by performing Horizontal Analysis of both the

selected companies and interpreting it.

✓ Ratio Analysis of both the companies for a period of 3 years and

commenting on the results. For calculation it is advisable to take the data
of 2019, 2018 and 2017. If the data of 2019 is not available then take the
data from 2018 for 3 years. You must calculate following Ratios :

1. Current Ratio
2. Debt To Equity Ratio
3. Cash Position Ratio
4. Inventory Turnover Ratio
5. Net profit Ratio
6. Fixed Assets Turnover Ratio

For Example,
Sample Format For Ratios
1) Current Ratio:-

Current Assets
Current Ratio = Current Liabilities

2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Current Assets 4325804 5056673 14400000 15160000 17450000

Current Liabilities 0 0 10720741 11001089 10868997

Current Ratio 0 0 1.34 1.38 1.61

Working Capital Ratio

2

1.5

0.5

2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Interpretation:-
The working capital ratio is ideally 2:1. So seen from the past data it has been analysed that
in 2017-2018 the working capital Ratio of company is 1.61 which is at the maximum for the
past year. So it has good or positive sign for the company’s working capital management.

✓ Comparative analysis of Ratios for both the companies.

For Example,
Ratios Company 2018 2017 2016
Current Ratio Nike 2:1 1.33:1 1.67:1
Current Ratio Adidas 2.33:1 2.40:1 1.96:1
Liquid Ratio Nike
Liquid Ratio Adidas