Decoding Corporate Finance: Real-World Ratios and Balance Sheets
This project broke down balance sheets and financial ratios using real-world companies like TCS, Microsoft, Apple, Nike, and Puma. I interpreted their payout and inventory turnover ratios to understand how corporate finance reflects business strategy.
Project Type
Analytical Report & Case Study
Date
December 2023
Course
Quantitative Reasoning II (Finance) | Semester 6
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What happens when the fantasy of control is marketed as female liberation...and why do millions buy into it?
What Sparked This?
This was part of my Quantitative Reasoning course in my third year, where we were encouraged to apply theoretical concepts to real data. I’ve always been curious about how numbers tell stories, so I chose to explore how financial documents actually reflect business decisions. We could pick any companies and dig into how they manage inventory, pay dividends, and present balance sheets.
What I Explored
This project looked at three core questions:
→ What does a balance sheet show?
I used Tata Consultancy Services’ annual report to break down assets, liabilities, and equity.
→ What is a Payout Ratio?
I compared Microsoft and Apple to understand how much they reward shareholders versus reinvest earnings.
→ How efficient is inventory movement?
I analyzed Nike and Puma’s inventory turnover to see which manages stock more strategically.
What stood out: Even globally successful companies approach financial decisions so differently. Apple is growth-focused, while Microsoft leans toward steady dividends. Financial strategy isn't just numbers, it's about philosophy.
Key Takeaways
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Learned how to analyze financial health using real-world company data
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Developed critical thinking around corporate strategy and data interpretation
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Improved skills in ratio calculation, financial analysis, and concise reporting
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Realized how financials tell a silent but powerful brand story