Financial Statement Analysis and Valuation (4 cr)

Evaluation scale

1-5

Objective

The student can define the basic concepts related to the evaluation of a company's financial success. He/she can present the planning and implementation of the various stages of the financial statement analysis process. The student can plan and implement a comprehensive financial statement analysis of a company. He/she can use key figures and their interpretation guidelines in assessing the success and value of a company. He/she can prepare an analysis report and interpret the results of the analysis from the perspective of the company and its various stakeholders. The student can evaluate the significance of a comprehensive financial statement analysis for a company operating in both domestic and foreign markets and its stakeholders.

Content

- Concepts and basic issues in financial statement analysis
- concepts and basic issues of financial analysis
- the importance of financial statement analysis in the decision-making of companies and their stakeholders
- implementation principles of financial statement analysis: data editing, selection of measurement objects and key figures, interpretation of key figures, cash flow calculations, market-based key figures, valuation
- tools for the design and implementation of financial statement analysis
- implementation of financial statement analysis in various decision-making situations
- specific issues in the indicator analysis
- preparation of financial analysis report
- thematic interview with financial statement analysis and/or valuation expert

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

Luennot ja itsenäinen työskentely

Student workload

Luennot 40 tuntia
Itsenäinen työskentely 68 tuntia

Assessment criteria, satisfactory (1)

The student has completed the given tasks/sections. 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 various stages of the financial statement analysis process. The student is able to plan and implement a simple financial statement analysis of a company. He/she is able to use key figures and their interpretation guidelines in assessing the success of a company in an international company as well. He/she is able to prepare a simple financial statement analysis report and interpret the results of the analysis from the perspective of the company and its various stakeholders. The student is able to evaluate the significance of financial statement analysis for a company operating in both domestic and foreign markets and its stakeholders.

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 various stages of the financial statement analysis process. The student is able to plan and implement an analysis of a company's financial statements. He/she is able to use a variety of key figures and their interpretation guidelines in assessing the success of a company, even in an international company. He/she is able to prepare an analysis report and interpret the results of the analysis from the perspective of the company and its various stakeholders. The student is able to evaluate the significance of a comprehensive financial statement analysis for a company operating in both domestic and foreign markets and its 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 various stages of the financial statement analysis process. The student is able to plan and implement a comprehensive financial statement analysis of a company. He/she is able to use versatile and critical indicators and their interpretation guidelines in assessing the success of a company, even in an international company. He/she is able to prepare a comprehensive financial statement analysis report and interpret the results of the analysis from the perspective of the company and its various stakeholders. The student is able to evaluate the significance of a comprehensive financial statement analysis for a company operating in both domestic and foreign markets and its stakeholders.

Qualifications

Financial Management Studies 1 - 5