Análisis Financiero (18BBA30002)

General information

Type:	OB	Curs:	2	Period:	S semester
ECTS Credits:	5 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Sec: A	Soledad Moya Gutierrez	Economía, Finanzas y Contabilidad	CAT

Group	Teacher	Department	Language
Sec: B	Soledad Moya Gutierrez	Economía, Finanzas y Contabilidad	ESP

Group	Teacher	Department	Language
Sec: C	Soledad Moya Gutierrez	Economía, Finanzas y Contabilidad	CAT

The Financial Analysis course focuses on the use and interpretation of financial statements in order to make a diagnosis of the financial and economic situation of companies or groups of companies and, based on that, be able to make decisions for the incoming future. To do that, participants will employ a set of tools and indicators that will allow them to form a judgement on the situation of the company analysed. Additionally to that, the course introduces forecasting of financial statements and the basics of consolidation that add to the previous analysis of financial statements and allows participants to develop comprehensive diagnosis together with the provision of recommendations.

It is a fundamental course for the understanding of the usefulness of financial reporting and for the decision making process that takes place in business.

The objectives of the Accounting and Financial Analysis III course are the following:

1. Understand the content and usefulness of basic and advanced financial statements and the difference between separate vs consolidated financial statements
2. Examine the purpose and use of trends and ratios and understand how its integrated analysis can be used to evaluate corporate performance and make decisions.
4. Learn to assess the firm's ability to meet its near-term obligations
5. Understand the capital structure and analyze the firm's ability to meet long term obligations and capital needs
6. Examine the purpose and usefulness of profitability measures.
7. Learn to forecast financial statements in order to make predictions and evaluate future performance
8. Understand the basics of the consolidation process, the definition of groups and the implications of consolidation for the analysis of financial statements

3. Taking decisions / making judgments

2. Application of knowledge to achieve results

1. Knowledge acquisition, comprehension and structuring

1. INTRODUCTION TO FINANCIAL DATA: Advanced Financial Statements and Other financial reporting topics 1. A general review of the annual report and elemental financial statements 2. Coping with international differences: use and role of IFRS 3. The statement of comprehensive income and the statement of cash flows

2. CONSOLIDATED FINANCIAL STATEMENTS 1. Some basic concepts: what is a group, what are the requirements for consolidation, why do we have to consolidate? 2. Accounting for investments: introduction to methods 3. Full consolidation method: goodwill, external partners and internal transactions 4. Implications of consolidated financial statements for the analysis

3. FINANCIAL STATEMENT ANALYSIS FINANCIAL STATEMENT ANALYSIS: A BRIEF OVERVIEW 1. Common size analysis (vertical and horizontal) 2. Introduction to the ratio analysis 3. Limitations to the analysis of financial statements LIQUIDITY OF SHORT-TERM ASSETS; RELATED DEBT-PAYING ABILITY 1. Current assets, short-term liabilities and the operating cycle 2. Current assets compared to short-term liabilities: analysis of the working capital. 3. Other liquidity considerations LONG-TERM DEBT-PAYING ABILITY 1. Income statement consideration when determining long-term debt-paying ability 2. Balance sheet consideration when determining long-term debt-paying ability PROFITABILITY ANALYSIS 1. Profitability measures 2. The relationship between profitability ratios 3. Market indexes 4. Introduction to pro-forma financial information

4. FINANCIAL PLANNING 1. The projection of the income statement 2. The projection of the cash flow statement 3. The projection of the balance sheet

The methodology used in the course combines theoretical and practical sessions. In the theoretical sessions basic concepts will be provided together with examples and short cases that help participants to assimilate the foundations of accounting and financial analysis 3. In the practical sessions, participants will solve questions based on exercises that they will have previously worked on at home.

Additionally, 2 short tests will be delivered during the course in the practical sessions, 1 before the mid term exam and 1 after. These 2 short tests will be based on the concepts worked in previous sessions and will be multiple choice like.

As part of the method of the course, the students will have to develop a group project that will be presented in class. The details of this assignment will be provided in the theoretical sessions.

Gibson, Charles. (2013). Financial Statement Analysis. 13th International Edition. South-Western Cengage Learning. Canada
Higgins, Robert C. (2012). Analysis for financial management. 10th Edition. Wiley. New York
Mahoney, P; MacLochlainn, N. (2013). Consolidated Financial Statements. 2ne Edition. Chartered Accountants Ireland.
White, G.; Sondhi, A. C. Fried, D. (2003). The analysis and use of financial statements. 3rd Edition. Wiley.

Group	Teacher	Department
Sec: A	Soledad Moya Gutierrez	Economía, Finanzas y Contabilidad

Group	Teacher	Department
Sec: B	Soledad Moya Gutierrez	Economía, Finanzas y Contabilidad

Group	Teacher	Department
Sec: C	Soledad Moya Gutierrez	Economía, Finanzas y Contabilidad