EM054M21A1

Program
PGE
PGE 2A - FINANCE - COMPTABILITE
UE
Essential concepts in financial analysis
Semester
A
Discipline
Finance
Contact hours
27 H
Number of spots
45
Open to visitors
Yes
Language
Coordinator
Christine SERVEY

List of lecturers

Lecturer(s) Email Contact hours - lecture
Christine SERVEY christine.servey@em-strasbourg.eu 27 h

Pedagogical contribution of the course to the program

LEARNING GOAL 1 : Students will master state-of-the-art knowledge and tools in management fields in general, as well as in areas specific to the specialized field of management.
Students will identify a business organization’s operational and managerial challenges in a complex and evolving environment.
Students will understand state-of-the-art management concepts and tools and use them appropriately.
Students will implement appropriate methodologies to develop appropriate solutions for business issues.

Description

The course provides an overview of the key concepts used to conduct a financial and stock market analysis. The introduction points out the growing importance of reliable financial statements in a globalization context. The first part covers the financial accounts. The second part covers the most frequently used measures and techniques to conduct a financial accounts'analysis. In this section, particular attention is paid to value creation for shareholders. The last part covers the tools and techniques used to conduct a stock market analysis. Oral interaction in class will be facilitated by the numerous quiz which will be answered.

Teaching methods

Face-to-face

- Lectures
- Tutorials
- E-learning

In group

No items in this list have been checked.

Interaction

No items in this list have been checked.

Others

- Internships

Learning objectives

Cognitive domain

Upon completion of this course, students should be able to
  • - (level 2) Explain the growing importance of effective accounting systems and reliable financial documents in the context of an accelerated globalization.
  • - (level 2) Describe the nature of the major financial documents (income statement, balance sheet and cash flow statement), their underlying principles and respective interdependencies.
  • - (level 3) Demonstrate the fundamental steps of a financial analysis (margin analysis, efficiency analysis, financing, profitability and risk analysis)
  • - (level 3) Compute key financial analysis and stock market analysis indicators
  • - (level 4) Analyze the accounting ratios and stock market indicators to point out the strengths and weaknesses of a financial situation
  • - (level 4) Distinguish between accounting and economic indicators
  • - (level 4) Examine risk measures (liquidity ratio, gearing ratio) to point out certain areas of risk such as high financial leverage and distinguish between high returns driven by risk and true value creation

Affective domain

Upon completion of this course, students should be able to
None affective domain have been associated with this course yet

Outline

I General introduction II Financial accounts 1. Accounting: A crucial information source for decision making 2. Profit and loss statement 3. Balance sheet 4. Cash flow statement 5. Statement of changes in equity 6. Relationships between financial statements III Financial accounts'analysis 1. From financial accounts to financial analysis 2. Profitability analysis 3. Efficiency analysis 4. Value creation and performance measurement 5. Risk analysis and financial leverage 6. How to conduct a financial analysis? IV Stock market analysis 1. Key financial concepts for shares 2. Market multiples 3. How to conduct a stock market analysis? V General conclusion

No prerequisite has been provided

Knowledge in / Key concepts to master

Basic knowledge in - accounting - corporate finance
- basic knowledge of financial statements - Time value of money concepts (NPV, Future value)

Teaching material

Mandatory tools for the course

- Computer
- Calculator
- Reference manuals

Documents in all formats

- Photocopies
- Worksheets

Moodle platform

- Upload of class documents
- Assessments

Software

No items in this list have been checked.

Additional electronic platforms

No items in this list have been checked.

Recommended reading


CORPORATE FINANCE: THEORY AND PRACTICE (Paperback) by Pascal Quiry (Author), Maurizio Dallocchio (Author), Yann le Fur (Author), Antonio Salvi (Author) Publisher: John Wiley

VERNIMMEN newsletter:http://www.vernimmen.com/html/letter/index.php lettre VERNIMMEN: http://www.vernimmen.net/html/lettre/index.php Further references to academic litterature can be found at the end of every chapter of the VERNIMMEN textbook

EM Research: Be sure to mobilize at least one resource

Textbooks, case studies, translated material, etc. can be entered
No reading material has been provided.

Assessment

List of assessment methods

Intermediate assessment / continuous assessment 1Other (date, pop quiz, etc.) : to be specified in class
Written (33 Min.) / Individual / English / Weight : 5 %
Details : Students will have to complete 3 quizzes on the moodle page of the class corresponding to each of the three parts to the course. Each quiz will be open for one day only.There will be one trial only for each of the three quizzes, questions will be randomly picked among the questions appearing in the on line quizzes
This evaluation is used to measure LO1.1, LO1.2, LO1.3
Intermediate assessment / continuous assessment 2Other (date, pop quiz, etc.) : TO BE SPECIFIED IN CLASS
Written (50 Min.) / Individual / English / Weight : 25 %
This evaluation is used to measure LO1.1, LO1.2, LO1.3
Final evaluationExam week
Written (120 Min.) / Individual / English / Weight : 70 %
This evaluation is used to measure LO1.1, LO1.2
No assessment methods have been attributed to this course yet.