Essential concepts of financial analysis
EM054M2WA1
Program
PGE
Visitants
Visitants
UE
Essential concepts in financial analysis Gr.5
Semester
A
Discipline
Finance
Contact hours
27 H
Number of spots
45
ECTS
5
Open to visitors
Yes
Language
Coordinator
Hava ORKUT
List of lecturers
| Lecturer(s) | Contact hours - lecture | |
|---|---|---|
| Hava ORKUT | horkut@em-strasbourg.eu | 27 h |
Pedagogical contribution of the course to the program
No educational contribution associated with this course for this program.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. Lecture organization (27 hours in total) : synchronous (face-to-face) lectures (18 hours) and asynchronous lectures (online, 9 hours) Evaluation : 5% (online quizzes), 25% (midterm exam) and 70% (final exam)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
- InternshipsLearning 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 toNone affective domain have been associated with this course yet
Outline
I General introduction (1 hour) II Financial accounts (6 hours) 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 (8 hours) 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 (4 hours) 1. Key financial concepts for shares 2. Market multiples 3. How to conduct a stock market analysis? V General conclusion (1 hour)No prerequisite has been provided
Knowledge in / Key concepts to master
Basic knowledge in - Accounting - Corporate financeTeaching material
Mandatory tools for the course
- Computer- Calculator
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 CROSSKNOWLEDGE PLATFORM EM-Essential concepts in finance : the financial statements CROSSKNOWLEDGE PLATFORM EM-Essential concepts in finance : FINANCIAL ANALYSIS
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 enteredNo reading material has been provided.
Assessment
List of assessment methods
Intermediate assessment / continuous assessment 1Class no. 7 or 8
Written (50 Min.) / Individual / English / Weight : 25 %
Details : The presence is mandatory.
Written (50 Min.) / Individual / English / Weight : 25 %
Details : The presence is mandatory.
Intermediate assessment / continuous assessment 2Other (date, pop quiz, etc.) : To be defined
Written (120 Min.) / Individual / English / Weight : 5 %
Details : The deadline for taking all the quizzes will be indicated in class.
Written (120 Min.) / Individual / English / Weight : 5 %
Details : The deadline for taking all the quizzes will be indicated in class.
Final evaluationExam week
Written (110 Min.) / Individual / English / Weight : 70 %
Details : The presence is mandatory.
Written (110 Min.) / Individual / English / Weight : 70 %
Details : The presence is mandatory.