Financial Analysis: measuring , capturing and retaining value (2235.YR.015205.1)

General information

Type:	OPT	Curs:	1	Period:	S semester
ECTS Credits:	5 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Year 1	Gloria Batllori Lloveras	Economía, Finanzas y Contabilidad	ENG

This course is for students who did not had financial courses in their Master degree

This course focus on the decision to select the optimal strategic alternative that will have both short and long term impact on the financial results and future success of a corporation.

The world has changed profoundly in the last couple of years and we need to know how to manage in uncertain times. Uncertainty is a known topic in finance and understanding how to assess and manage uncertainty is key for businesses. In this course we will cover the process of identifying market opportunities for firms and evaluating the financial impact on the value of the firm.

In Financial Analysis we take a deep dive into the information on the financial statements and with the use of ratios we are able to diagnose the financial position and profitability of a firm. The purpose of this course is to focus on the ability to create value through operating the existing business and investing in new ventures to sustain the positive results in the future.
Highlights and outcomes of the course:
- Master integral financial analysis and evaluation tools to apply them to company analysis
- Focus on the main objective of increasing profitability: through initiatives to increase revenues and decrease costs.
- Identify and quantify the value drivers of a business
- Develop initiatives/actions/projects to generate a positive impact on the short and the long term
- Measure the unlocked value of each initiiative selected

Methodology: the course is structured around a group project. Each group will select a company to analyze. It is important to select a company that is excessively know and performs very well such as Apple, Microsoft and other similar cases. It is also important to select a company with easy access to information, that is a transparent company. In general companies facing different type of challenges tend to be good candidates to identify initiatives to unlock value.

The course focuses on understanding the impact of decision on the current performance of the company and future financial results.

- To analyze and understand of existing business performance processes
- To identify paths to improve existing business performance systems or even creating new ones to be adapted to any situation
- To define action plans to improve performance and restructure P&L
- To define action plans to manage financial risk and restructure Balance Sheet
- To understand and measure actions to grow
- To understand and measure enterprise valuation
- To understand and measure the impact of actions on enterprise value
- To communicate financial information to influence enterprise value

The key objective of this course is to develop the capacity to feel the future and learn to cocreate it with the market.

1. Introduction to Value Introduction to the course and to the concept of value. The main indicator covered is Enterprise Value applied to different real cases.

2. Financial Statements Review of information and structure of the financial statements and connection to the main objective of the course: how to create value using a comprehensive approach

3. Financial Analysis Analysis and evaluation of financial position using ratios: liquidity and solvency

4. Financial Analysis Analysis and evaluation of financial performance using ratios: ROA and ROE

5. Value Creation A review of the concept of value creation and application to two different contexts: financial and non financial metrics.. Understand and interpret the metric ROIC: application to real examples.

6. Budgeting Focus on the difference between short term and long term modelling. Application to a case: budgeting process

7. Valuation A review on DCF valuation technique and scenario planning as a key tool to manage businesses during uncertain times. Focus on the strategic contribution of finance by integrating financial modelling, financial metrics and strategy to create value. Application to a case

8. Valuation A review on Multiple valuation. Focus on comparable valuation. Application to a case

9. Final Project presentation Final project group presentation

Sessions in this course have a strong focus on applied learning. This course is oriented to developing capabilities to understand financial concepts and applied them in the context of uncertainty. Lectures applied to understand value creation process in companies.


Lectures will combine professor exposition and students' participation in class. A group project is the learning activity to apply the concepts into a real case.

To summary the methodologies are:
Conceptual class discussion: the aim is to present and discuss collectively conceptual models and frameworks previously prepared.
Project: each group will analyze Disney and identify the process of value creation at Disney and its future opportunities. You will write a report (see the guidelines on the web of the course) and prepare a video presentation to be submitted.

ASSESSMENT BREAKDOWN

Class Slides, readings, articles and videos will be available in the course Moodle.
There are many books to approach the course, among those I have selected two:

Tim Koller . Valuation: Measuring and Managing the Value of Companies
Baruch Lev. The end of accounting

Group	Teacher	Department
Year 1	Gloria Batllori Lloveras	Economía, Finanzas y Contabilidad