Financial Statement Analysis Simulation

Apply financial statement analysis to a real company case

Students analyse the Income Statement, Balance Sheet and Cash Flow Statement, calculate and interpret profitability, liquidity, efficiency and solvency ratios, and use their findings to form a share price prediction.

2 - 3-hour single-player simulation
Analyse key financial ratios
In-class, online or hybrid delivery

How it fits your course syllabus

The simulation applies core Financial Statement Analysis concepts in sequence. Students connect the three financial statements, calculate and interpret key ratios, then reassess company performance across five reporting periods before forming a supported share price prediction.

Three-statement analysis

Analyse the Income Statement, Balance Sheet and Cash Flow Statement.

Financial ratio analysis

Calculate profitability, liquidity, efficiency and solvency ratios

Analysis across reporting periods

Review five periods of updated financial information and company reports.

At a glance

Duration

2 - 3 hours

Run the simulation in one workshop or divide it across teaching sessions.

Format

Single-player simulation

Each student participates as a Financial Analyst and submits their own decisions.

Level

UG, PG and MBA

Suitable for introductory, business, corporate, managerial and financial management courses.

Professor tools

Live dashboard included

Control the timeline, manage participants, review inputs and send class alerts.

Prerequisites

Beginner accessible

Suitable for beginners, with video guidance, case information, task checklists, pop-ups and tooltips.

Delivery

In class, online or hybrid

The simulation is web-based and supports different teaching formats.

Assessment

Individual evidence available

Use submissions, scores, rankings and reflection outputs as supporting evidence.

Course fit

Fits core finance modules

Designed for Intro to Finance, Business Finance, Corporate Finance, Financial Management, Managerial Finance, and Business and Management courses.

Financial data to informed judgement

Turning reported numbers into a clear, evidence-based judgement about financial health, performance and future prospects.

Diagram showing how financial data is used to make informed judgement

Financial Statement Analysis simulation gameflow and stages

1. Intro:

10 minutes

Students begin by watching the introductory video, which explains the simulation, their perspective as Financial Analysts and the challenge ahead. The video also helps build interest and prepares students for the activity.

They then review their mission, objectives, task checklist and the sequence of stages. By the end of the Intro, students understand what they need to do, what they will submit and how the simulation progresses from financial analysis to share-price prediction.

2. Ratio Calculation (Analysing):

40 minutes

Students work with a company's Income Statement, Balance Sheet and Cash Flow Statement in the Financials & Ratios workbook. They review the figures, understand how the three primary statements connect and calculate the required ratios using the formulas provided across two years.

For each metric, students consider:

what it measures;
which financial values are used;
how it is calculated;
what the result reveals about the company.

They submit their ratio answers in the platform, evaluate whether the trend is positive, negative or inconclusive, across the two years, and provide a rationale for their judgement.

This stage builds the core foundations of Financial Statement Analysis by combining accurate calculation with interpretation and explanation.

3. Reflection (Debriefing):

10 minutes

Students view the first leaderboard and review their submitted answers. Where an answer is incorrect, the platform displays the correct result for comparison.

This allows students to identify whether the issue came from selecting the wrong financial data, applying the wrong formula, entering the answer incorrectly or misinterpreting the result.

The stage gives students an opportunity to correct misunderstandings before moving into the more complex analysis rounds. Professors may use it for a short debrief or allow students to review their performance independently.

4. Analysis & Share Prediction (Predicting):

Approximately 1.5 hours

Students apply their understanding across five evolving analysis rounds. Each round provides updated financial information and new company developments.

Students calculate only a few selected ratios (while the rest are provided to them), compare results with previous years, assess changes in financial performance and submit a share-price prediction.

The early rounds begin with a manageable amount of information, such as updated financial statements and news items. As the simulation progresses, students receive more detailed materials, which may include Annual Reports, Analyst Reports, research reports and further company updates.

In each year, students must:

update their financial analysis;
identify important trends and warning signs;
interpret new quantitative and qualitative information;
decide whether their previous view still holds;
submit a revised share-price prediction.

They can also monitor the leaderboard, Share Distribution, median prediction and Share Price History. These outputs help students compare their judgement with the cohort while still forming an independent, evidence-based view.

Note: The share price prediction is designed to make the analysis more interactive and engaging, rather than to replicate a full equity-valuation exercise. Students base their prediction only on the financial statements, selected ratios and basic company reports provided within the simulation, using these sources to translate their financial analysis into a clear, defensible judgement. The share price prediction is more of an interactive and excitement-centric addition to the simulation.

5. Final Reflection (Debriefing):

No fixed time limit

Students review the final leaderboard, Share Distribution, Share Price History, submitted answers and correct answers.

They can identify where calculation or interpretation errors affected their decisions and consider how their predictions changed across the five years.

Students may also compare strategies with their peers and discuss why different participants reached different conclusions from the same information.

The professor can use the final outputs to explore:

which indicators influenced decisions;
when students changed their views;
how they responded to new information;
whether they followed the cohort too closely;
what they would do differently.

The Final Reflection reinforces the central lesson of the simulation: Financial Statement Analysis is not only about reaching the correct number, but using evidence to form and defend a well-reasoned financial judgement.

Why professors use it

It connects the three primary financial statements

Students must draw evidence from the Income Statement, Balance Sheet and Cash Flow Statement rather than treating each item as an isolated topic.

It makes interpretation visible

Submitted calculations, evaluation choices and share price predictions show whether students can move from a numerical result to a meaningful financial judgement.

Guided delivery with professor oversight

Once launched, the simulation leads students through the full activity in sequence. Professors can monitor progress and intervene when useful, without directing every task or providing continuous instruction.

What the experience looks like

The Professor Admin Panel brings timeline controls, participant management, guidance and live monitoring into one place. The Student Interface guides each participant from financial-statement analysis to a share price prediction.

Control the simulation timeline

The timeline shows the complete stage sequence and allocated timings. Professors can select a stage to move all participants to that point or use Adjust to change the time available.

Access the professor guidance

The Admin Guide provides Setup & Facilitation guidance, Teaching Notes and the Gameflow Diagram. The First Time User Guide introduces the dashboard and student experience.

Run and manage the session

Play starts automatic progression. Pause holds the timer in the current stage. Stop locks student screens.

Case materials students work with

Students receive quantitative and qualitative information about the company. The Financials & Ratios workbook provides the numerical evidence, while company reports, round descriptions and newsfeeds provide context for interpreting why the figures may be changing.

Financials & Ratios workbook

The workbook brings together the Income Statement, Balance Sheet and Cash Flow Statement, supplied formulas and a dedicated area for student calculations.

Annual and Analyst Reports

Management and individual commentary gives students qualitative context to compare with the reported results.

5 mins

Student Intro Video

The student intro video introduces the simulation, explains the Financial Analyst perspective and outlines the key stages and objectives. It helps students understand what to expect and builds confidence before the timed activity begins.

Assessment and scoring

Assessment is optional. Professors may run the simulation as an ungraded applied activity or use the platform data as one source of assessment evidence. Simulation scores should support, rather than automatically replace, academic judgement.

What professors can assess

• Financial-ratio calculation accuracy
• Interpretation of results and scores

How to interpret the results

• Separate calculation errors from interpretation errors
• Review submitted answers alongside the score

What professors can assess:

Financial-ratio calculation accuracy: Submitted numerical answers provide evidence of whether a student selected the appropriate financial data and applied the required calculation accurately.
Interpretation of results and scores: Evaluation choices help distinguish the ability to calculate a ratio from the ability to interpret its financial meaning.
Optional individual assessment report: Students may be asked to submit a short written report outside the platform once they have reviewed and reflected on their outcomes. This is not automatically captured or graded by the simulation.

How to interpret the results:

Separate calculation errors from interpretation errors: An incorrect conclusion may result from an inaccurate calculation or from an inaccurate interpretation of a correct result.
Review submitted answers alongside the score: Correct and incorrect submissions provide more diagnostic evidence than the aggregate score alone.

Professor setup and delivery

The dashboard supports automatic progression, manual stage selection and adjustable timings. Coaching is optional, and the simulation can be paused and resumed across more than one teaching session.

Step 1

Add participants and test access

Add students through Player Management and confirm that they can access the simulation before the timed activity begins.

Step 2

Configure timings and session settings

Review the timeline, adjust individual stage durations where required and decide whether the activity will run in one session or across several sessions.

Step 3

Start and manage the simulation

Press Play to start the timer and automatic progression. Pause is useful for a short break or class-wide clarification. Stop halts the timer and locks student screens.

Step 4

Monitor progress and coach selectively

Use Live Monitoring to review calculations and decisions. Intervene where students misunderstand the task or process, without directing them towards a preferred share price prediction.

Professor Resources

Everything needed to prepare, run and debrief the Financial Statement Analysis simulation is organised within the resources below.

Financial Statement Analysis
Income Statement analysis
Balance Sheet analysis
Cash Flow Statement analysis
Connections between the three primary financial statements
Revenue, costs, profit and margin analysis
Assets, liabilities, equity and capital structure
Operating, investing and financing cash flows
Profitability ratios
Liquidity ratios
Activity and efficiency ratios
Solvency ratios
Financial performance ratios

Creators of the Financial Statement Analysis Simulation

These industry professionals were involved in the inception, creation, development, testing and optimisation of the simulation.

Investment banking experience across UBS, Morgan Stanley, and Deutsche Bank. Studied Mathematics at Saratov University.

Andrey Simonov

Former Practice Specialist in McKinsey’s Corporate Finance team in Germany and Finance professor at Aberdeen University.

Gerhard Kling

Worked in the finance department of Precomp Tools. Studied Engineering and holds an MSc in Corporate Finance from Bayes.

Aatmay Upponi

Assistant Professor of Finance at Tilburg University, teaching corporate finance courses. Also lectures at TIAS Business School.

Fatemeh Hosseini

Senior investment banker at Morgan Stanley with experience in M&A and TMT coverage across New York and San Francisco. Studied business at Kellogg.

Bharat Venugopal

FAQs

Yes. Because students review all three statements over multiple periods, professors can ask whether reported profit is supported by operating cash flow and whether changes in receivables, inventory, payables or capital expenditure explain a divergence. The simulation is not presented as a specialist forensic-accounting exercise, but it creates a practical setting for discussing the quality and sustainability of earnings rather than treating net income as the only indicator of performance.

The prediction gives students a concise way to convert accounting analysis into a forward-looking judgement. After reviewing financial statements, ratios and new qualitative information, they must decide whether the evidence changes their view of the company. The prediction is therefore an engagement and reflection device, not a substitute for a DCF or equity-valuation model. Professors can focus the debrief on why the student revised - or did not revise - the prediction and whether that response was consistent with the financial evidence.

Students work with the income statement, balance sheet and cash-flow statement across successive reporting periods. Changes in sales, margins, working capital, capital expenditure or financing therefore appear in more than one place and can affect several ratios at once. The exercise encourages students to trace the underlying business event through the statements before interpreting the ratio movement. This helps professors challenge formula-based answers that do not explain the economic relationship between profit, cash generation, assets and funding.

The early ratio work provides calculation evidence that can be compared with the documented answers, while later stages show how students use selected ratios, financial statements and qualitative updates to form a judgement. A student may calculate a ratio incorrectly but interpret the direction of the business correctly, or calculate it accurately and draw an unsupported conclusion. Reviewing attempted calculations, written rationales and the history of share-price predictions allows the professor to identify where the misunderstanding occurred.