Financial Statement Analysis

Year
3
Academic year
2019-2020
Code
01620005
Subject Area
Management
Language of Instruction
Portuguese
Mode of Delivery
Face-to-face
Duration
SEMESTRIAL
ECTS Credits
6.0
Type
Elective
Level
1st Cycle Studies

Recommended Prerequisites

Financial Accounting.

Teaching Methods

Expository lectures to introduce students to the main concepts coupled with more practical lectures aimed at problem solving and to motivate class discussion on the subjects taught, namely by discussion of real companies accounts.

 

Evaluation: General regime (final exam - 100%).

Learning Outcomes

Objectives:

Financial statement analysis considers a set of methods and techniques that support the emission of an opinion about the recent economic and financial performance of an organization as well as its outlook. The main objective of this course is to contribute to the development of the skills needed to issue such judgments, namely concerning SMEs. Specifically it is expected that after completing the course, students be able to provide a sustained opinion about the economic and financial health of the organization, namely to substantiate its financial strengths and weaknesses, and be able to estimate the provisional cash flows of a project and evaluate its economic viability.

Competencies:

The course allows the development of instrumental competences, namely cognitive abilities and methodological capacities, interpersonal competences, namely concerning ethics and written communication, and systemic competences concerning the capacity to apply prior knowledge to new situations.

Work Placement(s)

No

Syllabus

1. Introductory concepts

1.1. Concept and uses of financial analysis

1.2. Principles guiding the economic and financial diagnosis

2. The basic elements of financial analysis

2.1. Information: accounting based and extra accounting

2.2. Tools for the analysis and the economic and financial report writing

3. The financial perspective

3.1. The universal constraint of solvability

3.2. Financing growth

4. The economic perspective

4.1. The imperative of profitability

4.2. Return on capital employed and value creation

5. The risk perspective

5.1. Company structure and operational and financial risk

5.2. Credit scoring and rating

6. Introduction to capital budgeting.

6.1. Project cash flows

6.2. Evaluation criteria and risk analysis.

Head Lecturer(s)

Paulo Miguel Marques Gama Gonçalves

Assessment Methods

Evaluation
Exam: 100.0%

Bibliography

Neves, J., 2012, Análise e Relato Financeiro – Uma visão Integrada de Gestão 5ª ed., Texto Editores

Mota, A., Barroso, c., Nunes, J., Ferreira, M., 2012, Finanças Empresariais – Teoria e Prática, 4ª ed., Edições Sílabo.

Cohen, E., 1996, Análise financeira, Editorial Presença

Higgins, R., Analysis for Financial Management, 7th Ed. Irwin/McGraw-Hill, 2004

Martins, A., 2004, Finanças Empresariais – Estudo de Casos, Coimbra, Fundação Bissaya Barreto, 2004.