Study Guide

Objective

Students are able to define the basic concepts of analyzing economic success. They can list the stages of the planning and implementation of financial analysis process. Students know how to plan and realize a comprehensive financial statement analysis of a firm (using FAS as well as IFRS -statements). They know how to use financial ratios and how to interpret them in analyzing the success and value of a firm also in an international corporation. Students know how to plan and draw up a report of financial statement analysis and interpret the results of analysis from the point of a firm and its interest groups. They can evaluate the significance of comprehensive financial statement analysis for firms and their interest groups in the domestic and foreign markets.

Content

- Concepts and basic issues in financial statement analysis
- Financial statement analysis as a part of comprehensive financial management
- Significance of financial statement analysis for firms and their interest groups
- Principles of financial statement analysis: working up the data, choosing measurement targets and financial ratios, interpreting financial ratios, cash flow statements, market-based ratios, valuation
- The importance of differences between the Finnish (FAS) and international (IFRS) financial reporting standards on financial statement analysis
- Tools for designing and realizing financial statement analysis
- Basics of financial statement analysis implementation in different decision-making situations
- Drawing up a financial statement report
- Theme interview with an expert in financial and/or valuation analysis

Materials

- Kallunki, J-P. ja Kytönen, E. 2007. Uusi tilinpäätösanalyysi (New Financial Statement Analysis)

- Bergevin, P.M., 2001. Financial Statement Analysis: An Integrated Approach

- Yritystutkimusneuvottelukunta: Yritystutkimuksen tilinpäätösanalyysi (Committee for corporate analysis: Financial statement analysis in corporate research)

- Kytönen, E. 2017. Tilinpäätösanalyysiosaaminen. Opetusmoniste. (Skills in financial statement analysis. Teaching paper.)

- Websites of financial statement analysis software service firms (links in the Teaching paper)

- material provided by the teacher in Moodle: https://moodle.epedu.fi/

Teaching methods

Lectures and exercises

Student workload

Lectures and exercises 40 h
Independent work 68 h

Evaluation scale

1-5

Assessment criteria, satisfactory (1)

Satisfactory (1-2): 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 financial analysis process. Students know how to plan and realize a simple financial statement analysis of a firm (using FAS as well as IFRS ?statements). 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. Students know how to plan and draw up a simple report of financial statement analysis and interpret the results of analysis from the point of a firm and its interest groups. They can evaluate the significance of financial statement analysis for firms and their interest groups in the domestic and foreign markets.

Assessment criteria, good (3)

Good (3-4): The student has carried out work well and participated actively. Students are able to define the basic concepts of analyzing economic success. They can list the stages of the planning and implementation of financial analysis process. Students know how to plan and realize a financial statement analysis of a firm (using FAS as well as IFRS ?statements). They know how to use financial ratios and how to interpret them in analyzing the success of a firm also in an international corporation. Students know how to plan and draw up a report of financial statement analysis and interpret the results of analysis from the point of a firm and its interest groups. They can evaluate the significance of comprehensive financial statement analysis for firms and their interest groups in the domestic and foreign markets.

Assessment criteria, excellent (5)

Excellent (5): The student has carried out work to an excellent standard and participated actively and constructively. Students are able to define the basic concepts of analyzing economic success accurately. They can list the stages of the planning and implementation of financial analysis process logically. Students know how to plan and realize a comprehensive financial statement analysis of a firm (using FAS as well as IFRS ?statements). They know how to use financial ratios and how to interpret them critically in analyzing the success of a firm also in an international corporation. Students know how to plan and draw up a comprehensive report of financial statement analysis and interpret critically the results of analysis from the point of a firm and its interest groups. They can evaluate the significance of comprehensive financial statement analysis for firms and their interest groups in the domestic and foreign markets.

Assessment methods and criteria

Exam 100%

Qualifications

Financial Management Studies 1 - 5

Further information

Students are also advised to take a course in liquidity management and in investment and financial planning.

As part of the course, the student must attend the financial administration case clinic in the autumn semester.