ProgrammesModule: Financial Analysis
Course Title: Financial Analysis
Course Code: UU-FNE-4400-ZM
Programme: Bachelor of Science in Accounting and Finance - ZM
The rationale behind every module is to offer the student all possible knowledge in each module of the course, in order to be able to deepen their understanding and render them capable of practically applying it. Financial Analysis provides understanding of the environment under which financial statements are prepared and used in different types of business analysis. Students get to comprehend the accounting measurement and reporting practices underlying financial statements, the processes and methods of financial analysis, the analytical tools and techniques to meet the users’ objectives and the overall significance of conducting accounting analysis for financial analysis.
After completion of the course students are expected to be able to:
Distinguish between various forms of business entities and the financial statements that are required to be published using international accounting standards. Explain auditors’ opinions.
Prepare a classified balance sheet and detect problems in the balance sheet presentation and the statement of stockholders equity.
Prepare a classified income statement, statement of retained earnings and a statement of comprehensive income. Demonstrate the ability to account for stock splits, dividends and earnings per share.
Prepare trend and common size analyses, review descriptive material and compare results with other sources of data like industry averages, competition etc.
Analyze current assets and liabilities and prepare ratio analysis using these items.
Assess the long-term debt paying ability using ratios based on the income statement and the balance sheet.
Prepare profitability ratio analysis and interpret the results from the point of view of shareholders, creditors and managers.
Calculate ratios that are of interest to investors to evaluate their returns and risks of their investments.
Prepare a classified statement of cash flows and calculate important cash flow ratios
Prerequisites: UU-Bsc-IND100-ZM, UU-FNT-103-ZM
Prerequisites Categories: Semester 1, Semester 2, Semester 3, Semester 4, Semester 5, Semester 6
Typical Module duration: 4.0 Week(s)