ProgrammesModule: Financial Analysis
Course Title: Financial Analysis
Course Code: UU-FNE-2400-MW
Programme: Bachelor of Science (BSc) in Finance - MW
This module introduces students to basic procedures of financial analysis and reporting and the importance of data found on financial statements, as well as how to examine these procedures so as to follow the prescribed standards.
This module aims at equipping students with the knowledge of the nature and purpose of financial accounting and reporting, examine the role of financial statement analysis in different types of business analysis and discuss the importance and limitations of accounting data for analysis purposes along with the significance of conducting accounting analysis for financial analysis
Module Learning Outcomes
After completing the module students should be able to:
1. Distinguish between various forms of business entities and the financial statements that are required to be published using international accounting standards. Explain auditors’ opinions.
2. Prepare a classified balance sheet and detect problems in the balance sheet presentation and the statement of stockholders’ equity.
3. Create a classified income statement, statement of retained earnings and a statement of comprehensive income. Demonstrate the ability to account for stock splits, dividends and earnings per share.
4. Make trend and common size analyses, review descriptive material and compare results with other sources of data like industry averages, competition etc.
5. Analyze current assets and liabilities and prepare ratio analysis using these items.
6. Assess the long-term debt paying ability using ratios based on the income statement and the balance sheet.
7. Prepare profitability ratio analysis and interpret the results from the point of view of shareholders, creditors and managers.
8. Calculate ratios that are of interest to investors to evaluate their returns and risks of their investments.
9. Prepare a classified statement of cash flows and calculate important cash flow ratios.
Prerequisites: UU-BA-IND100, UU-FNT-103
Typical Module duration: 7.0 Week(s)