VSFS:BA_FA Financial Analysis - Course Information
BA_FA Financial Analysis
University of Finance and AdministrationSummer 2017
- Extent and Intensity
- 2/1. 5 credit(s). Type of Completion: zk (examination).
- Teacher(s)
- Ing. Kateřina Kalinová (seminar tutor)
Ing. Eva Kostikov, Ph.D. (seminar tutor) - Guaranteed by
- Ing. Kateřina Kalinová
Department of Economics and Management – Departments – University of Finance and Administration
Contact Person: Ing. Edita Jerie, DiS. - Timetable of Seminar Groups
- BA_FA/cBMCPH: each odd Monday 10:30–11:14 E124, each odd Monday 11:15–12:00 E124, except Mon 27. 3. ; and Tue 21. 3. 15:45–17:15 E223, E. Kostikov
BA_FA/cBMPH: each odd Monday 12:15–12:59 E124, each odd Monday 13:00–13:45 E124, E. Kostikov
BA_FA/pBMCUPH: each even Tuesday 8:45–9:29 E128, each even Tuesday 9:30–10:15 E128, each even Tuesday 10:30–11:14 E128, each even Tuesday 11:15–12:00 E128, except Tue 7. 2. ; and Tue 14. 2. 8:45–10:15 E122, 10:30–12:00 E122, 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
- 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.
- SCHROEDER, Richard G, Myrtle CLARK a Jack M CATHEY. Financial accounting theory and analysis: text and cases. 10th ed. Hoboken, NJ: Wiley, c2011, xi, 612 p. Beckova edice ekonomie. ISBN 04-706-4628-4.
- BIERMAN, Harold a Seymour SMIDT. Financial management for decision making. London: Collier Macmillan, c1986, xix, 842 p. ISBN 00-231-0030-3.
- HILLMAN, A, Richard F KOCHANEK a Noah P BARSKY. Principles of accounting: a focus on analysis and interpretation. 9th ed. Mason, Ohio: Thomson, c2004, CH 14 - 17. ISBN 0759320462.
- 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 practical lessons (seminars), elaboration of written seminar work and presentation
Examination: Written tests (30+60%), 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.
- Enrolment Statistics (Summer 2017, recent)
- Permalink: https://is.vsfs.cz/course/vsfs/summer2017/BA_FA