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Finance (M30495)

General information

Type:

OB

Curs:

1

Period:

S semester

ECTS Credits:

2 ECTS

Teaching Staff:

Group Teacher Department Language
Sec: A Gloria Batllori Lloveras Economía, Finanzas y Contabilidad ENG

Group Teacher Department Language
Sec: B Gloria Batllori Lloveras Economía, Finanzas y Contabilidad ENG

Group Teacher Department Language
Sec: C Gloria Batllori Lloveras Economía, Finanzas y Contabilidad ENG

Course Learning Objectives

Finance is a course that will provide you with the analytical tools employed in financial statement analysis. It will bridge the financial reporting practice to the valuation methods and tools which are commonly used in finance (taught later in the program). The course will demonstrate the analytical power of financial statement analysis and will equip you with tools which you can apply in different contexts in your future carrier.

The course has three elements:

1. Ratio analysis: Ratio analysis is an analytical tool which is widely used in practice. The main advantage of ratios is that they resume information about the financial position and profitability of a company which a simple analysis of financial statement cannot do. Nevertheless, ratios are often inappropriately employed in financial statement analysis and their limitations are underestimated at both theoretical and practical level. In this part, we will examine in details the diagnostics which ratios provide, along with the red flags in their application.

2. Market perspective : We will discuss the limitations of this market approach and introduce the concept of ¿financial information quality¿. Both accounting and market ratios critically depend on the assumption that financial disclosure is informative and not significantly influenced by management decisions. Nevertheless, this assumption is unrealistic, given the strong incentives for managers to meet the analyst target, impress their competitors with extraordinary financial performance, receive a bonus as quickly as possible, etc.
3. Prospective analysis . Financial accounting information is often criticized for its focus on the past. However, past trends are very informative about future trends and expected deviations from the past. We will present and discuss the possibilities to introduce the future in financial statement analysis by implementing the prospective analysis.

In the end of this course, you will:
1. Prepare and suggest your interpretation in ratio and prospect analysis;
2. Be able to analyze the past performance of a company (i.e., its financial position and profitability) and make an educated guess about the expected trends;
3. Understand the interrelation between the financial statements and foresee the direction of changes in some accounts with the occurrence of an external events or a management's initiative.
4. Relate accounting information with market price trends and interpret market ratios.
5. Comprehend practical differences across industries in their financial statements.

CONTENT

1. INTRODUCTION TO FINANCIAL ANALYSIS.

Introduction to the course. From accounting analysis to financial analysis. Analysis of three decisions using financial statements.

2. ANALYSIS OF FINANCIAL STATEMENTS.

Information content of financial statements. Analysis of operating decisions. Comparative analysis across different industries.

3. PROFITABILITY ANALYSIS.

Introduction to ratio analysis. Different ratios for different needs. Advantages and limitations of ration analysis. Profitability analysis: Activity ratios, profit margins and returns.

4. PROFITABILITY ANALYSIS: INTEGRATIVE CASE.

Wal-Mart, Carrefour and Target: Profitability analysis.

5. RISK ANALYSIS.

Short-term liquidity and long-term solvency analysis. Bankruptcy risk.

6. QUALITY OF FINANCIAL INFORMATION.

Earnings management. Critical analysis of financial disclosure. Revenue recognition. Depreciation. Expectation management.

7. PROSPECTIVE ANALYSIS.


From historical data to forecasting. Critical analysis of forecasted data. Sources and use of financing.

8. PROJECT PRESENTATION.

Group presentation of financial analysis.

9. INTEGRATIVE CASE AND CLOSURE.

Integrative session.

Methodology

ASSESSMENT

ASSESSMENT BREAKDOWN

Description %
Group project and assigments 40
Final exam 60

Bibliography

"Financial reporting and analysis"

Timetable and sections

Group Teacher Department
Sec: A Gloria Batllori Lloveras Economía, Finanzas y Contabilidad

Timetable Sec: A

Friday 2017/10/13 from 8:00 to 10:00.

From 2017/11/9 to 2017/12/7:
Each Tuesday from 14:30 to 18:00. (Except: 2017/11/14 and 2017/11/21)
Each Tuesday from 8:00 to 10:00.
Each Thursday from 10:00 to 13:30. (Except: 2017/11/16, 2017/11/23 and 2017/11/30)

Friday 2017/11/17 from 10:00 to 13:30.

From 2017/12/13 to 2017/12/20:
Each Wednesday from 10:00 to 13:00. (Except: 2017/12/13)
Each Wednesday from 10:00 to 13:30. (Except: 2017/12/20)

Group Teacher Department
Sec: B Gloria Batllori Lloveras Economía, Finanzas y Contabilidad

Timetable Sec: B

Friday 2017/10/13 from 8:00 to 10:00.

From 2017/11/7 to 2017/12/5:
Each Tuesday from 14:30 to 18:00. (Except: 2017/11/14, 2017/11/21, 2017/11/28 and 2017/12/5)
Each Tuesday from 8:00 to 10:00. (Except: 2017/11/7)

From 2017/11/14 to 2017/12/5:
Tuesday and Friday from 10:00 to 13:30. (Except: 2017/11/17, 2017/11/21 and 2017/11/24)

From 2017/12/14 to 2017/12/20:
Each Thursday from 10:00 to 13:30.
Each Wednesday from 10:00 to 13:00.

Group Teacher Department
Sec: C Gloria Batllori Lloveras Economía, Finanzas y Contabilidad

Timetable Sec: C

Friday 2017/10/13 from 8:00 to 10:00.

From 2017/11/8 to 2017/12/5:
Each Tuesday from 8:00 to 10:00.
Each Wednesday from 10:00 to 13:30. (Except: 2017/11/15, 2017/11/22 and 2017/11/29)

From 2017/11/16 to 2017/12/4:
Monday and Thursday from 14:30 to 18:00. (Except: 2017/11/23, 2017/11/27 and 2017/11/30)
Each Monday from 10:00 to 13:30. (Except: 2017/11/20 and 2017/12/4)

From 2017/12/12 to 2017/12/20:
Each Wednesday from 10:00 to 13:00. (Except: 2017/12/13)
Each Tuesday from 10:00 to 13:30. (Except: 2017/12/19)