Financial Statement Analysis (5cr)

Evaluation scale

1-5

Objective

Students can plan and control the financial situation of a firm as part of the management process. Students can create and calculate different budgets such as income statement, balance sheet and cash flows. Students are also capable of creating different sub-budgets e.g. for sales, purchasing. Students can evaluate how the changing demand, costs and pricing affect the success of a firm. Student knows the key concepts of the course also in English. They can evaluate the significance of budgeting for firms in the domestic and foreign markets.

Content

- budgeting process, planning and control of budgets
- content of primary budgets, income statement, balance sheet and cash flow
- content of secondary budgets, e.g. sales, purchasing
- practical implementation of budgets

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. 2013. 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)

Teaching methods

- lectures, practice and assignment
- independent work

Employer connections

Work placement is not included in the course.

Student workload

- lectures 40 h
- independent work 70 h

Assessment criteria, satisfactory (1)

Excellent 5
Student is able to implement primary and secondary budgets at an excellent level. Student also is able to simulate how different changes affect the firm financial position at excellent level.

Good 4-3
Student is able to implement primary and secondary budgets at a good level. Student also is able to simulate how different changes affect the firm financial position at good level.

Satisfactory 2-1
Student is able to implement primary and secondary budgets at a satisfactory level. Student also knows that different changes affect the firm financial position in primary budgets.

Qualifications

Analysing and developing a business, 9 op (KD07APYR105) & Basics of Financial Management, 2 op (KD07BLLA011)

Further information

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