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Establishment
Language of instruction
French, English
This course occurs in the following program(s)
Bachelor in management
- Crédits ECTS:
Licence Eco-Finance ou Gestion + Prepa Commerce
- Crédits ECTS:
Training officer(s)
Gilles Van De Putte
Présentation
Prerequisite
A basic knowledge of general accounting, balance sheets, and income statements
Goal
This course is designed to give students a theoretical and practical understanding of financial analysis methodology using the accounting information of a commercial or industrial company. It will progressively build on accounting information with respect to inventory, risk, and especially the continued operations of a business.
Presentation
The goal of financial analysis is to study a business's strengths and weaknesses using diverse informaion of human capital and of financial resources. This analysis depends on a number of criteriae recognized as soundness and profitability. Therefore, financial analysis relies on three factors:
- Appraisal of the current situation using the balance sheet
- Analysis of the income statement in order to measure the capacity to provide resources
- Running analysis of balance sheet, income statement, and future financing plans in order to anticipate future financial needs of the company
Outline:
A - Essential concepts: inventory, results, flow, balance sheets, cash
I - Logistics of inventory flow
II - Setup of the balance sheet
1 - Traditional and functional balance sheets
2 - Retirement activities
3 - Working capital, future capital needs and net cash
4 - Analysis of the financing balance and current net cash
III - Activities and results from the income statement
1 - Intermediate balances
2 - Cash flows: family allowances, estimated time of arrival, ESO
B -Financial analysis and diagnostics
I - Financial diagnostic ratios
1 - Structural and liquidity ratios
2 - Activity ratios
3 - Profitability
4 - The methodological guidelines and rules to abide
II-Diagnosis of operating risk, financial risk, global risk
1 - Operational risk: t
- Appraisal of the current situation using the balance sheet
- Analysis of the income statement in order to measure the capacity to provide resources
- Running analysis of balance sheet, income statement, and future financing plans in order to anticipate future financial needs of the company
Outline:
A - Essential concepts: inventory, results, flow, balance sheets, cash
I - Logistics of inventory flow
II - Setup of the balance sheet
1 - Traditional and functional balance sheets
2 - Retirement activities
3 - Working capital, future capital needs and net cash
4 - Analysis of the financing balance and current net cash
III - Activities and results from the income statement
1 - Intermediate balances
2 - Cash flows: family allowances, estimated time of arrival, ESO
B -Financial analysis and diagnostics
I - Financial diagnostic ratios
1 - Structural and liquidity ratios
2 - Activity ratios
3 - Profitability
4 - The methodological guidelines and rules to abide
II-Diagnosis of operating risk, financial risk, global risk
1 - Operational risk: t
Modalités
Forms of instruction
The course is organized into two parts:
- 18 in-class hours with a few examples that provide knowledge of the main theoretical concepts of financial analysis and allowing a good grasp of financial analysis methodology.
- 12 hours of tutorials covering exercises designed to facilitate the diagnostic approach in business.
- 50 hours of homework
- 18 in-class hours with a few examples that provide knowledge of the main theoretical concepts of financial analysis and allowing a good grasp of financial analysis methodology.
- 12 hours of tutorials covering exercises designed to facilitate the diagnostic approach in business.
- 50 hours of homework
Evaluation
Ressources
Bibliography
Elie Cohen, "<em> Analyse financière</em> " ; Economica - dernière parution|| Levasseur, Quintard, "<em> Finance</em> " ; Economica - dernière parution