Financial Statement Analysis

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