BA_FA Financial Analysis

University of Finance and Administration
Summer 2015
Extent and Intensity
2/1. 5 credit(s). Type of Completion: zk (examination).
Teacher(s)
Ing. Kateřina Kalinová (seminar tutor)
Ing. Miloš Krejčí (assistant)
Guaranteed by
Ing. Marie Těhlová
Department of Economics and Management – Departments – University of Finance and Administration
Contact Person: Ing. Edita Jerie, DiS.
Timetable of Seminar Groups
BA_FA/cBMPH: each even Thursday 10:30–11:14 E225, each even Thursday 11:15–12:00 E225, K. Kalinová
BA_FA/pBMPH: each even Monday 8:45–9:29 E223, each even Monday 9:30–10:15 E223, each even Monday 10:30–11:14 E223, each even Monday 11:15–12:00 E223, K. Kalinová
Prerequisites
There are no prerequisites for this course.
Course Enrolment Limitations
The course is offered to students of any study field.
Course objectives
At the end of the course students will acquire skills in basic methods used in assessment of financial performance of businesses – i.e. in financial analyses. Students will will be able to understand the chosen assessment techniques, ratio indicators and comprehensive methods of financial analysis. They will also learn how to interpret various ratios and how to interpret results of financial analysis. The Financial Analysis course serves as a foundation for follow up courses focused on controlling and financial management.
Syllabus
  • 1. Main terms of financial analysis (FA); the essence, procedure and the sources of financial analysis information; basic structure of balance sheet, profit & loss statement and cash flow statement; limitations of basic financial reports.
  • 2. Methods of financial analysis and their classification; interpretation of the ascertained FA values; horizontal and vertical analysis; assessment of their explanatory power.
  • 3. Ratio indicators as the cornerstone in FA; their importance and the explanatory power of the individual ratio indicators of FA ; liquidity ratios – current, quick and cash ratio.
  • 4. Solvency ratios - debt and coverage ratios, importance of the financial structure of the company, WACC.
  • 5. Profitability ratios - profit levels, ratios of ROA, ROE, ROS, ROCE and their explanatory power, influence of leverage.
  • 6. Activity ratios – the speed and time period of turnover; indicators of fixed asset coverage; cash conversion cycle and its role in the effective financial management.
  • 7. DuPont breakdown of ROE and ROA, Pyramid Decompositions, and their explanatory power.
  • 8. Capital market ratios - P/E, P/S, P/BV, dividend payout - their role in the investors´ decision making process; industry specific ratios.
  • 9. Cash flow ratios - CFO/revenue CFO/equity, CFO/assets; situations requiring use of CF ratios.
  • 10. MVA and EVA indicators.
  • 11. Comprehensive FA indicators – bankruptcy models – Altman Z-score of 1968 and 1983 known as the ZETA Model.
  • 12. Comparative financial analysis - summary of the semester project, practical example of real life companies.
Literature
    required literature
  • ROBINSON, Thomas R. International financial statement analysis. 2nd ed. Hoboken, N.J.: John Wiley, c2012, xxvii, 1009 p. ISBN 04-709-1663-X.
    recommended literature
  • BIERMAN, Harold a Seymour SMIDT. Financial management for decision making. London: Collier Macmillan, c1986, xix, 842 p. ISBN 00-231-0030-3.
  • BRIGHAM, Eugene F. Financial management: theory and practice. 13th ed. Mason, OH: South-Western Cengage Learning, c2011, xxxi, 1152 s. ISBN 978-1-4390-7809-9.
Teaching methods
PS: (full time students) 2 hours per week of lectures and 1 hour per week of seminars (2/1); KS: (part time students) 6 seminars (90 min each). Lectures for present studies will be split into theoretical as well as practical part. Theoretical parts will be always explained on practical examples on seminars.
Students in full time study program should attend 75% of seminars as a minimum. Students in part time study program should attend 50% of seminars as a minimum.
Assessment methods
Credit: Active participation at both lectures and practical lessons (seminars), elaboration of written seminar work and presentation
Examination: Written tests (40+50%), presentation (10%)
Language of instruction
English
Further comments (probably available only in Czech)
The course can also be completed outside the examination period.
Information on the extent and intensity of the course: 12 hodin KS/semestr.
The course is also listed under the following terms Summer 2013, Summer 2014, Summer 2016, Summer 2017, Summer 2018, Summer 2019, Summer 2020, Summer 2021.
  • Enrolment Statistics (Summer 2015, recent)
  • Permalink: https://is.vsfs.cz/course/vsfs/summer2015/BA_FA