Common-sized financial statements in the retail and airline industries in Colombia

This teaching case study intends to serve Financial Statement Analysis courses in the undergraduate and master’s degree, by helping student’s learning process, applying real-life examples in evaluating the ability to use and interpret fundamental data, assessing and analyzing the Cash Conversion Cycle and Return on Assets. Common-sized financial statements and other financial ratios from two Colombian companies, operating in the retail and airline industries are compared, highlighting the differences in cash conversion cycle, their components and the drivers of return on assets in each industry. Common-sized financial statements allow comparing different companies regardless of size and industry.