Course syllabus FAP - Company Financial Analysis (ŠAVŠ - Sklad předmětů)

     Czech          English          

Course title: Company Financial Analysis
Semester: -- item not defined --
Course supervisor: doc. Ing. Romana Čižinská, Ph.D.
Supervising department: Department of Finance and Accounting (ŠAVŠ)
Prerequisites for registration: none
Time allowance: full-time, 2/2 (hours of lectures per week / hours of seminars per week)
part-time, 0/16 (lectures per period / seminars per period)
Type of study: usual
Form of teaching: lecture, seminar
Mode of completion and credits: Exam (4 credits)
Course objective:
Financial analysis is the essential part of a modern company’s financial management. Acquaintance with financial analysis techniques and methods is a necessity for students of business. The basic precondition is the knowledge and understanding of company financial statements as the most important source of information for technical financial analysis. The objective of the course is, therefore, to give an overall picture of all financial analysis areas, methodical approaches, techniques, indicators and ratios that allow presenting true and fair view of company financial situation to both insiders and outside users.
 
Course methods: The full-time course consists of theoretical lectures and seminars. During the term, several case studies and exercises are elaborated. For students in the part-time form of study, the course is lectured in four tutorial sessions (4 x 45 minutes each) and in individual sessions with the lecturer (if necessary).
 
Course content:
1.Financial analysis - Definition and Goals (allowance 4/2)
 
a.The Importance of Financial Analysis for Financial Management and Decision Making
b.External and Internal Financial Analysis
c.Company Financial Health and Performance
d.Financial Goals of the Company
e.The Relationship Between Profit and Company Value

2.Sources of Information for Financial Analysis (allowance 4/2)
 
a.Basic Principles of Financial Accounting; Consolidated Financial Statements; Audit
b.Utilization of Public Accouting Data for Financial Analysis
c.International and Czech Accouting Standards and Utilization of Financial Reporting for Financial Analysis
d.Limited Information Value of Accounting Data
e.The Causes of Accounting Manipulation and its Effects in the Financial Statement

3.Modifying Accounting Data for the Purpose of Financial Analysis (allowance 2/2)
4.Methods of Financial Analysis (allowance 2/1)
 
a.Vertical and Horizontal Analysis
b.Trend Analysis of Financial Statements
c.Ratio Analysis
d.Financial Benchmarking

5.Liquidity Ratios and their Interpretation (allowance 1/2)
 
a.Solvency and Liquidity
b.Primary and Secondary Insolvency
c.Cash Flow Ratios

6.Analyzing Investing Activities (allowance 1/2)
 
a.Asset Management Ratios
b.Cash Conversion Cycle
c.Fixed-Asset Turnover
d.Intangible Assets

7.Analyzing Financing Activities (allowance 1/2)
 
a.Debt Management Ratios
b.Financial Leverage and its Effect on ROE
c.Financial Stability

8.Analyzing Operating Activities (allowance 1/2)
 
a.Profitability Ratios
b.Profitability and Value Creation

9.Complex Performance Investigation (Tying the Ratios Together) (allowance 1/2)
 
a.Breaking Down ROE Using the DuPont Formula
b.Bankruptcy Prediction Models

10.Economic Value Measures (allowance 4/2)
 
a.Company Value and Value Drivers
b.Economic Value Added (EVA) and its Relation to Company Value
c.Cash Flow Return on Investment (CFROI)
d.Shareholder Value Added (SVA)
e.Primary and Secondary Goodwill

11.Market Value Ratios (allowance 1/1)
 
a.Types of Market value ratios
b.Business Valuation Under the Market Approach
c.Utilization of Information from Financial Market in Business Valuation

12.Intercompany and International Comparisons of Company Financial Performance. Differences in Financial Reporting and Their Impact on the Interpretation of Financial Ratios and Indicators (allowance 2/2)
13.Seminar Work Presentation (allowance 0/2)
 
Learning outcomes and competences:
After completing the course, student will be able to:
 
-Will analyse financial health of the company, interpret the results of financial analysis and identify the weak points of company financial health
-Will define financial health of the company and select efficient methods of its evaluation
-Will explain different approaches and methods of company valuation
-Will select appropriate information and modify accounting statements for the need of financial analysis

Teaching methods and workload (hours of workload):
Type of teaching methodDaily attendanceCombined form
Direct teaching
     Attendance of lectures24 h16 h
     Attendance of courses/seminars/tutorials24 h0 h
     Consultations with teacher (part-time form of study)0 h4 h
Self-study
     Course reading and ongoing preparation10 h28 h
     Ongoing evaluation26 h22 h
     Composing of individual (seminar) work14 h14 h
     Preparation for final test14 h28 h
Total112 h112 h
 
Assessment methods:
Requirement typeDaily attendanceCombined form
Mid-term test(s)60 %60 %
Final test40 %40 %
Total100 %100 %
 
Course completion:
During the semester:
- two midterm tests (20 points at the maximum, minimum of 60 % is necessary to fulfil this part of the overall evaluation)
- seminar work (financial analysis assignment) and its presentation (40 points at the maximum)

Final exam:
Written test containing theoretical questions and complex case study on analysis of financial statements. Total Score is 40 points. Oral exam follows, but is not necessary in the case of excellent written exam.

Final Grade is computed based on the following formula: Two midterm tests (maximum of 20 points) + Seminar work and its presentation (maximum of 40 points) + Final Exam (maximum of 40 points) = maximum of 100 points. The grading scale is as follows:
90 - 100 % of points = 1
75 - 89 % of points = 2
60 - 74 % of points = 3
59 and less % of points = fail
 
Support for combined/distance forms of study:
Educational and supporting study materials distributed through the AIS.
 
Reading list:
Basic:
Language of instruction: Czech
SEDLÁČEK, J. Finanční analýza podniku. 2nd ed. Brno: Computer Press, 2011. ISBN 978-80-251-3386-6.
MAŘÍK, M. Metody oceňování podniku.: Proces ocenění základní metody a postupy. 3rd ed. Praha: Ekopress, 2011. ISBN 978-80-86929-67-5.
VOCHOZKA, M. Metody komplexního hodnocení podniku. 1st ed. Praha: GRADA, 2011. ISBN 978-80-247-3647-1.
Language of instruction: English
VENANZI, D. Financial Performance Measures and Value Creation: the State of the Art . New York: Springer, 2012. 73 p. ISBN 978-88-470-2450-2.
SUBRAMANYAM, K R. Financial Statement Analysis. 11th Edition. New York: McGraw-Hill Education, 2013. 816 p.
EHRHARDT, M C. -- BRIGHAM, E F. Financial Management.: Theory and Practice. 15th edition. Boston: Cengage Learning, 2015. 1180 p. ISBN 978-1-305-63229-5.

Recommended:
KNAPOVÁ, B. -- KRABEC, T. -- ROUBÍČKOVÁ, J. EBIT Criterion: Financial Analysis' Issues. INTERNATIONAL JOURNAL of MATHEMATICAL MODELS AND METHODS IN APPLIED SCIENCES. 2011. v. 5, no. 3, p. 499--507. ISSN 1998-0140. URL: http://www.naun.org/journals/m3as/
KNÁPKOVÁ, A. -- PAVELKOVÁ, D. Finanční analýza.: Komplexní průvodce s příklady. 1st ed. Praha: GRADA, 2010. ISBN 978-80-247-3349-4.
RŮČKOVÁ, P. Finanční analýza.: Metody, ukazatele, využití v praxi. 3rd ed. Praha: GRADA, 2010. ISBN 978-80-247-3308-1.
Language of instruction: Czech
KISLINGEROVÁ, E. Manažerské finance.: 3. vydání +CD. 3rd ed. Praha: C.H.BECK, 2010. ISBN 978-80-7400-194-9.
MRKVIČKA, J. -- STROUHAL, J. Manažerské finance. 3rd ed. Praha: Institut certifikace účetních, 2014. 332 p. ISBN 978-80-86716-92-3.

Study plans:
B-EM-FME Business Administration and Financial Management, full-time form, initial academic year WS 2012/2013
B-EM-FME Business Administration and Financial Management, full-time form, initial academic year WS 2014/2015
B-EM-FME Business Administration and Financial Management, full-time form, initial academic year WS 2015/2016
B-EM-FME Business Administration and Financial Management, full-time form, initial academic year WS 2016/2017
B-EM-FAM Business Administration and Financial Management, part-time form, initial academic year WS 2017/2018
B-EM-FAM Business Administration and Financial Management, full-time form, initial academic year WS 2017/2018
B-EM-FME Business Administration and Financial Management, full-time form, initial academic year WS 2017/2018
B-EM-FAM Business Administration and Financial Management, full-time form, initial academic year WS 2018/2019
B-EM-FAM Business Administration and Financial Management, part-time form, initial academic year WS 2018/2019
B-EM-FME Business Administration and Financial Management, full-time form, initial academic year WS 2018/2019
B-EM-FAM Business Administration and Financial Management, full-time form, initial academic year WS 2018/2019
B-FRE Business Administration - Major in Financial Management, full-time form, initial academic year WS 2019/2020
Track BFR Financial Management full-time form, initial academic year WS 2019/2020
Track BFR Financial Management full-time form, initial academic year WS 2019/2020
B-FR Business Administration - Major in Financial Management, full-time form, initial academic year WS 2019/2020
Track BFRE Financial Management full-time form, initial academic year WS 2019/2020
Track BFR Financial Management part-time form, initial academic year WS 2019/2020
B-FR Business Administration - Major in Financial Management, part-time form, initial academic year WS 2019/2020
B-FR Business Administration - Major in Financial Management, full-time form, initial academic year WS 2019/2020
 
Run in the period of: SS 2018/2019, SS 2017/2018, WS 2017/2018, SS 2016/2017, WS 2016/2017, SS 2015/2016   (and older)
Course tutor: Bc. Ing. Dagmar Čámská, Ph.D. (examiner, instructor)
doc. Ing. Romana Čižinská, Ph.D. (examiner, instructor, lecturer, supervisor)
doc. Ing. Tomáš Krabec, Ph.D., MBA (examiner, instructor, lecturer)
Teaching language: Czech, English
Room: Mladá Boleslav


Last modification made by doc. Ing. Romana Čižinská, Ph.D. on 05/04/2018.

Type of output: