Checking date: 08/07/2020

Course: 2020/2021

Financial statement analysis
Study: Bachelor in Finance and Accounting (201)

Coordinating teacher: MACIAS DORISSA, MARTA PILAR

Department assigned to the subject: Department of Business Administration

Type: Compulsory
ECTS Credits: 6.0 ECTS


Competences and skills that will be acquired and learning results. Further information on this link
Knowledge: - To learn the existing formats of financial statements - To identify the information contained in the main financial statements and their usefulness. - To apply different techniques to assess the economic and financial situation of companies. - To analyze, synthesize and evaluate the obtained results. Skills: - Work with others, especially in teams, and to learn how to avoid and solve conflicts. - To make presentations, to discuss, communicate and defend their own point of view in an efficient manner through formal and informal, oral and written language. - capacity to study critically the financial statements and to understand the impact of accounting choice on financial statements. - To reach the results individually, but sharing those results, interacting and discussing with other students.
Description of contents: programme
Session 1: Financial Statements in International standards reporting regulation 1.1. Statement of Financial Position 1.2. Profit and Loss Account 1.3. Common size and trend analysis Session 2: Creative accounting 2.1. Introduction 2.2. Methods 2.3. Detection 2.4. Consequences Session 3: Strategy analysis 3.1. Environment analysis 3.2. Industry analysis 3.3. Corporate strategy analysis Session 4: Analysing Profitability 4.1. Introduction 4.2. Financial and Economic performance 4.3. Analysing margins Session 5: Analysing Solvency and market performance 5.1. Introduction 5.2. Solvency ratios 5.3. Market ratios Session 6: Analysing Efficiency and liquidity ratios 6.1. Introduction 6.2. Efficiency ratios 6.3. Liquidity ratios and Cash flow statement Session 7: Firm Valuation 7.1. Introduction 7.2. Prospective analysis: forecasting 7.3. Valuation using multiples 7.4. Discounted cash flows model Session 8: Sector Analysis 8.1. Introduction 8.2. Cluster analysis 8.3. Cases Session 9: Bankruptcy Prediction 9.1. Introduction 9.2. Discriminant analysis 9.3. Multi-discriminant analysis 9.4. Logit Analysis
Learning activities and methodology
The course combines class activities (2 ECTS), team work (2ECTS) and individual work (2 ECTS). Class activities should allow the understanding and application of analysis techniques to real cases. Team work will allow students to develop and apply the acquired knowledge to a project, so that they can develop the skills outlined previously. Individual work consists in acquiring the required theoretical knowledge and implies an individual effort to know and apply the different analytical tools, and the importance of analyzing the impact of accounting choices.
Assessment System
  • % end-of-term-examination 50
  • % of continuous assessment (assigments, laboratory, practicals...) 50
Basic Bibliography
  • Palepu, Healy, Bernard. Business Analysis and Valuation: Using Financial Statements, Text and Cases, 4th. Cengage Thomson. 2011
  • Penman, S.H. . Financial Statement Analysis and Security Valuation, Fifth Edition. McGraw-Hill. International Edition 2013

The course syllabus and the academic weekly planning may change due academic events or other reasons.