Business Financial Analysis

Business Financial Analysis

Course ID:

ΕΦΟ-06

Semester: 2nd

Year of Study: 1st Year

For Erasmus Students: Όχι

Learning Outcomes

Upon successful completion of the course the student will be able to:

  • Analyze and understand the business and competitive strategy of a firm
  • Understand how accounting rules and conventions represent a firm’s business economics and strategy in its financial statements
  • Analyze assets, liabilities, entities, revenues, and expenses
  • Effectively evaluate a company’s accounting choices and accrual estimates
  • Analyze financial ratios and cash flow measures of the operating, financing, and investing performance of a company relative to either key competitors or historical performance
  • Develop forecasted financial statements and use them to make estimates of a firm’s value.

Course Contents

  1. Framework for Business Analysis and Valuation Using Financial Statements
  • The Role of Financial Reporting in Capital Markets
  • From Business Activities to Financial Statements
  • Influences of the Accounting System on Information Quality
  • From Financial Statements to Business Analysis
  1. Strategy Analysis
  • Industry Analysis
  • Competitive Strategy Analysis
  • Corporate Strategy Analysis
  1. Fundamentals of Financial Accounting
  • Generally Accepted Accounting Principles (GAAP)
  • Basic accounting equation
  • Elements of Financial Statements (assets, liabilities, equity, revenues, expenses)
  • Impact of business transactions on basic accounting information
  • Financial statements
  1. Implementing Accounting Analysis
  • The Institutional Framework for Financial Reporting
  • Factors Influencing Accounting Quality
  • Steps in Performing Accounting Analysis
  • Accounting Analysis Pitfalls
  • Value of Accounting Data and Accounting Analysis
  • Recasting Financial Statements
  • Making Accounting Adjustments
  1. Financial Analysis for Decision Making
  • Comparative Analysis
  • Ratio Analysis
  • Cash Flow Analysis
  • Profitability Analysis
  • Credit Analysis
  • Liquidity and Working Capital Analysis
  • Analysis of Operating Activity of Liquidity
  • Capital Structure
  • Solvency Analysis
  1. Prospective Analysis: Forecasting
  • The Overall Structure of the Forecast
  • Performance Behavior: A Starting Point
  • Making Forecasts
  • Sensitivity Analysis
  1. Valuation Theory and Concepts
  • The Discounted Dividend Valuation Method
  • The Discounted Cash Flow Model
  • The Discounted Abnormal Earnings Model
  • The Discounted Abnormal Earnings Growth Model
  • Valuation Using Price Multiples
  • Shortcut Forms of Earnings-Based Valuation
  • Comparing Valuation Methods
  1. Valuation Implementation
  • Detailed Forecasts of Performance
  • Terminal Values
  • Computing a Discount Rate
  • Computing Equity Value
  • Practical Issues in Valuation
  1. Course Review

Teaching Activities

Lectures (3 hours per week)

Teaching Organization

Activity

Semester Workload

Lectures (3 hours per week x 13 weeks)

39 hours

Individual Work

72 hours

Projects

39 hours

Course Total

150 hours

Assessment

The course offers a combination of lectures, case-studies presentations, class discussions and readings. A key feature of the course is the practical application of the academic theory and empirical evidence to real-world business cases.

The course is assessed through weekly sort assignments and the delivery of a group business analysis project (30%), and two examinations: one mid-semester examination (20%) and the final examination (50%).

Use of ICT

Use of Information and Communication Technologies (ICTs) (e.g. power point) in teaching. The lectures for each chapter are uploaded on the e-class platform in the form of ppt files, which the enrolled students can freely download.

Teaching Hours: 3

ECTS Credits: 6

Teaching Credits:

Weight:

Type:

Language: Ελληνική

Teaching Method: Πρόσωπο με πρόσωπο

General Competences: Αναζήτηση, ανάλυση και σύνθεση δεδομένων και πληροφοριών, με τη χρήση και των απαραίτητων τεχνολογιών, Προσαρμογή σε νέες καταστάσεις, Λήψη αποφάσεων, Αυτόνομη εργασία, Ομαδική εργασία

Associate Professor
Τζελέπης Δημήτριος - Αναπληρωτής Καθηγητής

Γνωστικό Αντικείμενο: Earnings Management, Accounting, Fraud Detection

Οργανική Μονάδα / Εργαστήριο:

Τηλέφωνο: +30 2610 962583

Ώρες γραφείου: Sabbatical leave for the year 2022/23

eclass URL: