Financial analysis

Basic financial statements, meaning and purpose of financial statement analysis, vertical and horizontal analysis ratios (liquidity, marketing, profitability, financial independence, equity), net cash flow, investment assessment techniques.

Objectives

Upon successful completion of this course, the student should: 1. Acquire sufficient knowledge to evaluate business plans. 2. analyze financial statements and understand their usefulness to information and decision making. 3. Gain the ability to draw conclusions in regard to liquidity, capital structure efficiency, creditworthiness etc. business through the analysis of financial statements. 4. Acquire the ability to compare successive financial statements and statements of different enterprises in order to identify problems and highlight the advantages or disadvantages. 5. Evaluate investment under certainty and risk.

Prerequisites

Financial Accounting

Syllabus

CONCEPT AND IMPORTANCE OF FINANCIAL STATEMENTS • METHODS OF ANALYSIS OF ACCOUNTING STATEMENTS (VERTICAL & HORIZONTAL ANALYSIS, ANALYSIS RATIOS VOLTAGE) • RATIOS (MEANING AND IMPORTANCE, FORMATION, CATEGORIES) • LIQUIDITY RATIOS • ACTIVITY RATIOS • PROFITABILITY RATIOS • CAPITAL STRUCTURES AND VIABILITY RATIOS • INVESTMENT RATIOS • APPLICATIONS • FINANCIAL PROJECTIONS