Technics of financial analysis

Description: The discipline gives an idea of financial analysis as a system of knowledge about the methods of research of financial and economic activity of the enterprise. It contributes to the assimilation of the basic techniques and criteria of financial analysis, the formation of students' skills in conducting financial analysis of the company's activities, assessing the current financial condition of an economic entity and the expected prospects for its development. As a result of studying this discipline, the student acquires competencies in the field of using the results obtained during the analysis to justify decisions aimed at the financial recovery of the enterprise.

Amount of credits: 3

Пререквизиты:

• Introduction to Finance

Course Workload:

Component: Component by selection

Cycle: Base disciplines

Goal

• formation of students' knowledge and skills of financial analysis of the company's activities, assessment of the current financial condition of the facility and the expected prospects for its development for making managerial decisions.

Objective

• The objectives of the course are to acquire new knowledge of the theoretical foundations on the problems of analysis in general and financial, in particular, to study the content of the main categories of financial analysis, to master the basic techniques and criteria of analysis, to acquire analytical calculation skills to use them in the practice of financial work at the enterprise.

Learning outcome: knowledge and understanding

• the place of financial analysis in the general financial management system; the subject, object and methods of financial analysis; types of financial analysis, its information basis.

Learning outcome: applying knowledge and understanding

• Skills: - performing practical calculations on the analysis of financial statements, including calculations of financial coefficients; - justification of measures for the financial rehabilitation of enterprises;. - preparation of a report on the use of financial resources and the implementation of financial plan indicators; Ability to: understand financial information, including foreign information published in the press; analyze the results of production and financial activities of an economic entity; analyze and evaluate the economic efficiency of capital investment measures; to monitor the performance of indicators of the financial plan, financial programs, the effective use of financial resources, fixed assets, intangible assets, working capital; to give an economic interpretation of the results obtained during the financial analysis and use them to develop measures aimed at improving the efficiency of the use of material, labor and financial resources, improving the financial condition of the enterprise as a whole.

Learning outcome: formation of judgments

• the ability, based on the financial analysis, to make a judgment about the financial position of the enterprise, to give an economic interpretation of the results obtained during the financial analysis and use them to develop measures aimed at improving the efficiency of the use of material, labor and financial resources, improving the financial condition of the enterprise as a whole

Learning outcome: communicative abilities

• ability to adapt easily in a professional environment, to be flexible and mobile in various conditions and situations related to professional activity

Learning outcome: learning skills or learning abilities

• possession of the skills to acquire new specialized knowledge necessary for daily professional activities and continuing education in the master's degree, striving for professional and personal growth

Teaching methods

During the training sessions, the use of the following educational technologies is provided: - interactive lecture (the use of the following active forms of learning: guided (guided) discussion or conversation; moderation; demonstration of slides or educational films; brainstorming; motivational speech); - creation of scenarios for the development of various situations based on specified conditions; - information and communication (for example, classes in a computer classroom using professional application software packages); - search and research (independent research activity of students in the learning process); - solving educational tasks.

Assessment of the student's knowledge

Teacher oversees various tasks related to ongoing assessment and determines students' current performance twice during each academic period. Ratings 1 and 2 are formulated based on the outcomes of this ongoing assessment. The student's learning achievements are assessed using a 100-point scale, and the final grades P1 and P2 are calculated as the average of their ongoing performance evaluations. The teacher evaluates the student's work throughout the academic period in alignment with the assignment submission schedule for the discipline. The assessment system may incorporate a mix of written and oral, group and individual formats.

The evaluating policy of learning outcomes by work type

Evaluation form

The student's final grade in the course is calculated on a 100 point grading scale, it includes:

• 40% of the examination result;
• 60% of current control result.

The final grade is calculated by the formula:

 

Where Midterm 1, Midterm 2are digital equivalents of the grades of Midterm 1 and 2;

E is a digital equivalent of the exam grade.

Final alphabetical grade and its equivalent in points:

The letter grading system for students' academic achievements, corresponding to the numerical equivalent on a four-point scale:

Topics of lectures

• Financial analysis in the financial management system
• Information base of financial analysis
• Methods of financial analysis
• Express analysis of financial statements
• Assessment of the financial condition of the enterprise on the basis of in-depth analysis
• Analysis of balance sheet liquidity and solvency
• Financial stability analysis
• Analysis of business activity and enterprise performance
• Analysis of market activity of the enterprise
• Break-even Analysis
• Bankruptcy Probability Analysis

Key reading

• Финансовый анализ: учебник и практикум для вузов / И. Ю. Евстафьева [и др.] ; под общей редакцией И. Ю. Евстафьевой, В. А. Черненко. – Москва : Издательство Юрайт, 2021. – 337 с.
• Техника финансового анализа в контексте антикризисного управления предприятием: Учебное пособие/ О.В.Куур, Р.А. Костырко. - Усть-Каменогорск, ВКГТУ, 2019. – 170 с.
• Жилкина А. Н. Финансовый анализ: учебник и практикум для бакалавриата и специалитета / А. Н. Жилкина. — Москва : Издательство Юрайт, 2019. - 285 с.
• Шеремет А. Д. Анализ и диагностика финансово-хозяйственной деятельности предприятия: учебник / А.Д. Шеремет. – 2-е изд., доп. – Москва : ИНФРА-М, 2021. – 374 с.
• Анализ финансовой отчетности: учебник / под ред. М.А. Вахрушиной. – 4-е изд., перераб. и доп. – Москва : ИНФРА-М, 2022. – 434 с.

Further reading

• Пласкова Н. С. Анализ финансовой отчетности, составленной по МСФО: учебник / Н.С. Пласкова. – 3-е изд., перераб. и доп. – Москва : ИНФРА-М, 2022. – 276 c.
• Комплексный анализ финансово-хозяйственной деятельности фирмы: учебное пособие / В. Е. Афонина, М. Ю. Архипова, О. И. Башлакова [и др.] ; под. ред. В. И. Флегонтова. — Москва : Издательство «Аспект Пресс», 2020. — 333 с.