Abstract
In this Data Challenge, students learn to analyze the financial performance of a small firm via its income statement and balance sheet. Students are introduced to a simple process for calculating return on equity and the cash conversion cycle. The analysis demonstrates how managing the underlying determinants of return on equity, including the cash conversion cycle, can lead to a desired return on equity. By the end of this Data Challenge, students will have a basic understanding of how to calculate the relevant performance measures, interpret the results, recommend measures to improve financial performance, and estimate the impact of their recommendations on return on equity.