20221 - FINANCIAL STATEMENTS ANALYSIS (ADVANCED COURSE)
CLMG - M - IM - MM - AFC - CLEFIN-FINANCE - CLELI - ACME - DES-ESS - EMIT - GIO
Course taught in English
Go to class group/s: 31
Successful completion of this course enable students to use financial analysis formats and ratios in the perspective of: industry and competitor analysis perspective, credit analysis, equity analysis, (fraud) audit analysis.
Particular relevance is given to analysis and discussion of problems, incidents and case studies for real-world companies, in order to develop students' skills in identifying critical financial statement areas.
- Introduction to Financial Statements Analysis.
- Analysis of Income Statement: overall reformulation choices.
- (cont.) Unusual items.
- (cont.) Focus on operating income.
- Analysis of Balance Sheet: liquidity format and managerial format.
- (cont.) Managerial format.
- The ratio system: analysis of ROI (return on investment).
- The ratios system: analysis of ROE (return on equity).
- Analysis of the Cash Flow Statement: IAS 7.
- (cont.) Analysis of the Cash Flow Statement.
- (cont.) Empirical Research and Case Study.
- The influence of Accounting Principles (IFRS vs Local GAAP) on FSA.
- Strategic analysis and FSA: linkage between financials and KPIs; sensitivity analysis.
- FSA for a listed group of companies: Case Study.
- FSA and financial forecasts in the perspective of credit and equity analysis; preparation and evaluation of the reasonableness of financial forecasts; sensitivity analysis; Case Study.
- Fraud Analysis: how to identify the "red flags" through FSA; Case Study
For attending and non-attending students:
A final written exam. Duration: 1.45 or 2.00 hours. Format of questions: multiple choice (answers: numbers or sentences); true/false, numerical exercises (ex. reformulation of cash flow statement, calculation of some ratios etc.). No: questions about case studies (discussed in classroom) and optional readings. Teachers provide all the examples of exercises, multiple choice and true/false.
Available on the course website: slides (required), short readings (required), exercises and questions grouped by topic (required); supplemental readings (optional). For some topics (ex. cash flow statement preparation): basic materials (slide + exercises): students have to study these basic materials before lectures.