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Take a deeper focus into the financial theory and application in financial statement analysis. Start by reviewing financial statement analysis and then delve deeply into ratio analysis (liquidity and solvency) and valuation. This course is designed to take you past the standard financial ratio calculations and to encourage you to take a hard look at the information, keeping in mind that analysis is only as good as the data from which it is derived.
Course Outline
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Course Objectives
- Demonstrate a reasonable grasp and assessment of the firm's financial condition
- Construct a reasonable outlook/forecast of what may be the firm's future position
- Establish the firm's credit worthiness (credit status)
- Determine the operational nature of the firm and its business environment
- Perform financial statement analysis in a realistic and rational manner
- Demonstrate an understanding of what financial statements are and how they relate to the company's big picture
- Grasp the necessity and reason for analyzing financial statement information and how it can and should be employed to help manage businesses better
- Achieve a comfort level with the analytical tools and their practical applications in performing financial statement analysis
- Establish a pattern of thinking in a more creative and thorough manner when analyzing or forecasting financial information
What You Learn
- Sources of financial, industry and strategic information
- Six steps of financial statement analysis
- Porter's Five Forces framework
- Generally Accepted Accounting Principles (GAAP)
- Earnings management
- Asset and liability valuation
- Income recognition
- Pensions and other post-employment benefits
- Statement of cash flows
- Accounting quality
- Recurring income
- Adjustments to reported financial statements (balance sheets)
- Converting Last In, First Out (LIFO) to First In, First Out (FIFO)
- Straight-line and accelerated depreciation
- Ratio analysis
- Credit analysis (solvency)
- Forecasting financial statements
How You Learn
- Textbook
- Case studies
- Discussions
- Written assignments
- Company analysis project