Accountancy · Ratio Analysis
Analyse the annual report of a listed company
Compute liquidity, profitability and solvency ratios for a company over five years and explain the trends.
- DifficultyIntermediate
- Estimated time1–2 weeks
- Budget₹0
- ClassClass 12 to college
- TeamSolo or up to 2
- You needComputer only
Prerequisites: Balance sheet and profit and loss basics
Original · by TechnifyedCase StudyFinance ProjectFree to doComputer onlyResearch orientedWell documented
Overview
Listed companies publish their balance sheet, profit and loss account and cash flow every year. Ratios turn those pages into a story: is the company profitable, can it pay its bills, how much does it owe?
Why build this?
It is the standard Class 12 accountancy project, and doing it on a real company you know makes the numbers mean something.
What you will learn
- Where to find and how to read an annual report
- How to compute the main ratios
- How to compare a company with itself over time and with a competitor
- How to write an interpretation, not just a table
Skills you will use
Materials and tools
- Five years of annual reports for one company from its website
- Spreadsheet
Tools and software
Step-by-step roadmap
Start
You will finish with: a ratio table, five trend charts and a two-page interpretation.
- 1
Prerequisites
Know this first: balance sheet and profit and loss basics. Then collect the 2 items in the materials list.
- 2
Learn
- Where to find and how to read an annual report
- How to compute the main ratios
- How to compare a company with itself over time and with a competitor
- How to write an interpretation, not just a table
- 3
Plan
Define the customer, the problem and what you will find out. Prepare the survey, the data sources or the cost sheet.
- 4
Build
- Choose a company whose products you know and download five annual reports.
- Enter key figures: revenue, profit, current assets and liabilities, debt, equity.
- Calculate current ratio, quick ratio, net profit margin, return on equity and debt-equity ratio.
- Chart each ratio over five years.
- Compare the latest year with one competitor.
- Write what each trend suggests and why it may have happened.
- 5
Test
Recalculate one ratio by hand from the report and check it matches.
- 6
Document
Put the numbers in a spreadsheet, keep sources for every figure and write the findings plainly. Report structure
- 7
Present
Open with the main finding or the pitch, show the evidence, then say what you recommend. Presentation structure · Viva questions
- 8
Publish
Share the report or pitch deck; ask a teacher or a local business owner for feedback.
Expected outcome
A ratio table, five trend charts and a two-page interpretation.
Other versions of this project
Beginner version
Compute three ratios for a single year.
Advanced version
Add cash-flow analysis and a DuPont breakdown of return on equity.
Research version
Compare five companies in one industry and test whether size relates to margin.
Make this project better
- BasicCompute three ratios for a single year.
- This projectAnalyse the annual report of a listed company
- AdvancedAdd cash-flow analysis and a DuPont breakdown of return on equity.
- ResearchCompare five companies in one industry and test whether size relates to margin.
Ways to do this project
Text marked "You write this" is a prompt for your own work; everything else is specific to this project.
- Research question
- You write thisOne question you can answer with data, narrow enough to finish in the time you have.
- Hypothesis
- You write thisWhat you expect to find, and why.
- Variables
- You write thisWhat you change or compare, what you measure, and what you hold constant.
- Methodology
- Compare five companies in one industry and test whether size relates to margin.
- Data collection
- You write thisSay what you will record, how many times, and how you will keep the records safe.
- Analysis
- You write thisChoose the table, chart or test that answers the question; report averages with their spread.
- Limitations
- You write thisList what could have affected the result: small sample, instrument limits, things you could not control.
Literature review
Find five to eight sources (your textbook, review articles, reports) and note what each says about your question. Group them by idea, not one after another, and end with what is still not known.
References
List every source you used in one style throughout (author, year, title, where it was published, link and the date you opened it).
Use this as the outline of your README or case study.
- Problem
- Listed companies publish their balance sheet, profit and loss account and cash flow every year.
- Why it matters
- It is the standard Class 12 accountancy project, and doing it on a real company you know makes the numbers mean something.
- What was built
- A ratio table, five trend charts and a two-page interpretation.
- Technology
- Spreadsheet
- Architecture
- You write thisOne diagram: the parts and how data moves between them.
- Implementation
- You write thisThe 6 build steps in your own words, with one code or design decision you are proud of.
- Challenges
- You write thisThe hardest bug or decision, and how you got past it.
- Results
- Recalculate one ratio by hand from the report and check it matches.
- Demo and code
- You write thisA link to a live demo or a short video, and to the GitHub repository.
- Lessons learned
- You write thisWhat you would do differently next time.
- Future improvements
- Add cash-flow analysis and a DuPont breakdown of return on equity.
Working as a team
Solo or up to 2. Suggested roles:
Report and presentation
Report structure
- Title
- Executive summary
- Objectives
- Background: company, industry or idea
- Method: data sources and survey
- Analysis (tables, charts, calculations)
- Findings
- Recommendations
- Limitations
- Conclusion
- References and annexures
Presentation structure
- The problem or question
- The market or company
- Method
- Key numbers
- Findings
- Recommendation or business model
- Costs and risks
- Next steps
Viva questions
Try answering before you open each one.
What does the current ratio show?
Whether the company can pay its short-term liabilities from its short-term assets.
Is a high debt-equity ratio always bad?
No, it depends on the industry and on how stable the profits are.
What is net profit margin?
Net profit divided by revenue.
Is this investment advice?
No, it is a learning exercise on past data.
Resources
Source and attribution
Original
Written by Technifyed. Free to use for your own school or college project; write the report in your own words. Added 1 Oct 2026.
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