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Evaluation of business success from financial statementsLaajuus (3 cr)

Code: LT00DE24

Objective

The student is able to define the basic concepts related to the evaluation of the financial success of an SME. The student is able to assess the financial condition of a company on the basis of financial statements. He/she is able to use key figures and their interpretation guidelines in assessing the success and value of a company.

Content

- Concepts and fundamental issues which are related to the evaluation of the success of SMEs
- Significance of the evaluation of the success in the decision-making of the SMEs and of their interest groups
- Principles of implementation of the evaluation: revision of the data, choice of measuring targets and of financial ratios, interpreting of financial ratios, cash flow statements, valuation

Assessment criteria, satisfactory (1)

The student has carried out work and participated as instructed. Students are able to define the basic concepts of analyzing economic success. They can list the stages of the planning and implementation of the financial analysis process. Students know how to plan and realize a simple financial statement analysis of an SME. They know how to use basic financial ratios and how to interpret them in analyzing the success of a firm also in an international corporation.

Assessment criteria, good (3)

The student has completed the given tasks/sections well and has actively participated in the course. The student is able to define the basic concepts related to the evaluation of a company's financial success. He/she is able to present the planning and implementation of the different stages of the evaluation process. The student is able to plan and implement an evaluation of the company's success from the financial statements. He/she is able to use a variety of key figures and their interpretation guidelines in assessing the success of a company from the perspective of different stakeholders.

Assessment criteria, excellent (5)

The student has completed the given assignments/sections commendably and has actively and constructively participated in the course. The student is able to precisely define the basic concepts related to the evaluation of a company's financial success. He/she is able to logically present the planning and implementation of the different stages of the evaluation process. The student is able to plan and implement a comprehensive evaluation of the success of an SME from the financial statements. He/she is able to use versatile and critical indicators and their interpretation guidelines in assessing the success of a company from the perspective of different stakeholders.