VSFS:BA_FA Financial Analysis - Course Information
BA_FA Financial Analysis
University of Finance and AdministrationSummer 2013
- Extent and Intensity
- 2/1. 5 credit(s). Type of Completion: zk (examination).
- Teacher(s)
- Ing. Marie Těhlová (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. Mgr. Dina Riegerová - Timetable of Seminar Groups
- BA_FA/cBMPH: each even Wednesday 17:30–18:14 E129, each even Wednesday 18:15–19:00 E129, M. Těhlová
BA_FA/pBMPH: each even Tuesday 15:45–16:29 E228, each even Tuesday 16:30–17:15 E228, each even Tuesday 17:30–18:14 E228, each even Tuesday 18:15–19:00 E228, M. Těhlová - Prerequisites (in Czech)
- Required courses (prerequisites): 1. Corporate Finance 1 and 2 2. Accounting A 1 and 2
- Course Enrolment Limitations
- The course is offered to students of any study field.
- Course objectives (in Czech)
- 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 (in Czech)
- 1. Main terms of financial analysis (FA); the essence, procedure and the sources of financial analysis information; basic structure of balance sheet and profit & loss statement; limitations of basic financial reports. Methods of financial analysis and their classification; interpretation of the ascertained FA values; structural and trend analysis; assessment of their explanatory power.
- 2. Difference indicators of liquidity – net working capital, profit levels for FA on the basis of financial results – EBIT, EBT, EAT; added-value-based indicators MVA, EVA; problems and use in financial analysis.
- 3. Ratio indicators as the cornerstone in FA; their importance and the explanatory power of the individual ratio indicators of FA – profitability ratios ROA, ROE, ROS; liquidity ratios – current, quick and cash ratio.
- 4. Ratio indicators – activity ratios, also known as asset utilisation ratios – the speed and time period of turnover; indicators of fixed asset coverage; cash turnover cycle; capital structure indicators – debt ratios and equity ratios and indicators of business’s debt abilities; explanatory power of the individual ratio indicators.
- 5. Ratio indicator systems – DuPont breakdown of ROE and ROA, Pyramid Decompositions, and their explanatory power; comprehensive FA indicators – bankruptcy models – Altman Z-score of 1968 and 1983 known as the ZETA Model.
- 6. Comprehensive FA indicators – bankruptcy and solvency models – Credibility Index of the Ivan and Inka Neumaier known as IN 95, IN 99 and IN 01, its explanatory power and deficiencies; Grunwald Solvency Model; Kralick Quick Test; Argenti A–score Model.
- 7. Comparison of the explanatory power of the individual models, their pros and cons for FA.
- Literature
- required literature
- BREALEY, Richard A, Stewart C MYERS a Franklin ALLEN. Principles of corporate finance. 8th ed. New York, NY: McGraw-Hill/Irwin, c2006, xxviii, 1028 p. ISBN 0072957239X.
- recommended literature
- BIERMAN, Harold a Seymour SMIDT. Financial management for decision making. London: Collier Macmillan, c1986, xix, 842 p. ISBN 00-231-0030-3.
- ROBINSON, Thomas R. International financial statement analysis. 2nd ed. Hoboken, N.J.: John Wiley, c2012, xxvii, 1009 p. ISBN 04-709-1663-X.
- 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 (in Czech)
- 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 (in Czech)
- Credit: Active participation at both lectures and practical lessons (seminars), elaboration of written seminar work or presentation
Examination: Written tests (minimum 60% achieved), final oral examination - Language of instruction
- English
- Further comments (probably available only in Czech)
- The course can also be completed outside the examination period.
General note: a0.
Information on the extent and intensity of the course: 6 hodin KS/semestr.
- Enrolment Statistics (Summer 2013, recent)
- Permalink: https://is.vsfs.cz/course/vsfs/summer2013/BA_FA