Credits: 6

Schedule: 25.09.2019 - 21.10.2019

Teacher in charge (valid 01.08.2018-31.07.2020): 

Juha-Pekka Kallunki (Fall term), Henry Jarva (Spring term)

Teaching Period (valid 01.08.2018-31.07.2020): 

2018-2019:I (Fall 2018) & IV (Spring 2019), Otaniemi Campus

2019-2020: I (Fall 2019) & IV (Spring 2020), Otaniemi Campus

Learning Outcomes (valid 01.08.2018-31.07.2020): 

After completing the course, students have knowledge and skills needed in analyzing financial statements in various decision-making situations. In particular, students can analyze financial statements in order to evaluate (i) various aspects of the profitability of the firm, (ii) cash flows vs. accrual earnings, (iii) credit risk of the firm, and (iii) the value of the firm. Students are moreover familiar with how valuation models are used when preparing IFRS financial statements.

Content (valid 01.08.2018-31.07.2020): 

1. Financial statement analysis in decision-making

2. Accrual vs. cash flow accounting, earnings quality

3. Analytical income statement and balance sheet

4. Analysis of the profitability of the firm, decomposing profitability measures

5. Effect of financial leverage to the profitability

6. Technical properties of financial ratios

7. Firm valuation

8. IFRS and firm valuation

9. Credit risk analysis

10. Contemporary research evidence on using financial statement analysis in decision making, especially in equity investments.

Assessment Methods and Criteria (valid 01.08.2018-31.07.2020): 

1. Exam (60 %)

2. Assignments (40%)

A student has to pass both the final exam and the total grade.

Workload (valid 01.08.2018-31.07.2020): 

- Lectures, 21h

- Exercises, 9h

- Independent work, 128h

- Exam, 4 h

Study Material (valid 01.08.2018-31.07.2020): 

Petersen, T & Plenborg, C. (2011). Financial Statement Analysis: Valuation - Credit Analysis - Executive Compensation. Prentice Hall.

Other study material and articles as instructed by the instructor during the course.

Supplementary (but not required) reading for Finnish students: Kallunki, J-P (2014). Tilinpäätösanalyysi. Talentum.

Saatavuus

Substitutes for Courses (valid 01.08.2018-31.07.2020): 

This course replaces 22E00100 Tilinpäätösanalyysit.

Course Homepage (valid 01.08.2018-31.07.2020): 

https://mycourses.aalto.fi/course/search.php?search=22E00100

Prerequisites (valid 01.08.2018-31.07.2020): 

Introduction to Financial Accounting (22C00100), Financial Accounting (22C00400).

Grading Scale (valid 01.08.2018-31.07.2020): 

0-5

Registration for Courses (valid 01.08.2018-31.07.2020): 

Via WebOodi. Please see WebOodi for the registration dates.

Description

Registration and further information