FINANCIAL STATEMENT ANALYSIS

The course contributes to the learning objectives of the Bachelor degree, which provides a learning in both the business and quantitative context, by preparing students able to interpret and analyse financial statements. In this course, students learn how to use accounting information for the analysis of corporate financial performance.

1 KNOWLEDGE AND UNDERSTANDING
The students of the Bachelor degree have to know and understand the main critical areas of multinational firms' financial performance. At the end of this course, the students will be able:
- to analyze and compare the financial statements of multinational firms;
- to interpret the differences of multinational firms' financial performance.

2 ABILITY TO APPLY KNOWLEDGE AND UNDERSTANDING
The students of the Bachelor degree have to apply their knowledge in real contexts through the analysis of accounting data, and to examine the financial performance problems of multinational firms. At the end of this course, the students will be able:
- to compare the financial statements of multinational firms with the application of financial statements analysis tools, as ratio analysis, cash flow analysis and prospective analysis;
- to give an evaluation on multinational firms' financial performance.

PRINCIPLES OF MANAGEMENT AND INTERNATIONAL ACCOUNTING - 1

The course aims to provide students with the theoretical foundation and analytical tools required to understand, interpret, and evaluate the information contained in corporate financial statements. Through an integrated approach, students will develop the skills needed to assess a company's economic, financial, and asset position, identifying its strengths, weaknesses, and future prospects.

Special attention will be devoted to the application of the main financial statement analysis techniques, which are essential for supporting decision-making processes by managers, investors, financial institutions, and other stakeholders interested in evaluating corporate performance.

Upon successful completion of the course, students will be able to:
- Understand the structure and content of financial statements.
- Interpret key financial, profitability, and solvency indicators.
- Assess a company's profitability, liquidity, and financial soundness.
- Analyze cash flows and evaluate a firm's ability to generate financial resources.
- Develop forward-looking assessments regarding future performance and long-term financial sustainability.

Course Contents
1. Introduction to Financial Statement Analysis
Objectives and users of financial statement analysis.
Main components of financial statements: Balance Sheet, Income Statement, Cash Flow Statement, and Notes to the Financial Statements.
The role of financial statement analysis in business decision-making.

2. Financial Statement Analysis: Vertical and Horizontal Analysis
Financial statement reclassification techniques.
Vertical analysis of financial and operating structures.
Horizontal analysis and assessment of changes in financial statement items over time.
Identification of trends and evaluation of performance dynamics.

3. Cash Flow Analysis
Principles and objectives of cash flow analysis.
Interpretation of the Cash Flow Statement.
Cash flows from operating, investing, and financing activities.
Assessment of the company's ability to generate cash and sustain growth.

4. Profitability Analysis
Measurement and interpretation of corporate profitability.
Analysis of margins and financial performance.
Key performance indicators, including ROE, ROI, and ROS.
Relationships between profitability and value creation.

5. Prospective Analysis
Using historical financial information to forecast future performance.
Development of financial and business scenarios.
Assessment of the sustainability of results in the medium and long term.
Analysis of risks and opportunities affecting corporate performance.

6. Liquidity and Solvency Analysis
Short-term and long-term financial equilibrium.
Evaluation of the company's ability to meet its financial obligations.
Key liquidity, leverage, and coverage ratios.
Assessment of financial stability and credit risk.

The course combines theoretical foundations with practical exercises and business cases, enabling students to apply analytical tools to real-world situations and develop a critical understanding of financial statement information and corporate performance.

Subramanyam K.R. (2014), Financial statement analysis, 11/e, McGrawHill (Chapters 1; 2; 7; 8; 9; 10)
The course program outline is available on Moodle.

The written exam is based on four exercises. The exercises are relative to all the issues of the course program. The exam lasts 90 minutes.
More detail information will be available at the beginning of the course.

written

The instructor is responsible for ensuring the authenticity and originality of all examinations and coursework. In cases of suspected academic misconduct, an additional on-site assessment may be required during the exams, which may differ from the standard format.

The evaluation criteria will be defined by the instructor of the course and published before the course start

The course compasses classes and exercise sessions.
Classes comprise both theoretical and practical issues. During the classes, there are three review sessions.
The focus of exercise sessions is to prepare students at the application of theoretical issues with exercises and case studies. Exercise sessions are usually set in a way that permits students to study the theoretical issues which have been presented in previous classes.
Students are encouraged to attend classes end exercise sessions.

EXAM ENROLMENT PROBLEMS. If students experience problems when enrolling online to the exam, they have to send an email to the Professor or Campus Economico before the closing date of exam enrolment. Students are not admitted to the exam if they are not enrolled online to the exam. Students are not admitted to the exam after the closing date of exam enrolment online.

ACCESSIBILITY, DISABILITY AND INCLUSION. ACCOMMODATION AND SUPPORT SERVICES FOR STUDENTS WITH DISABILITIES AND STUDENTS WITH SPECIFIC LEARNING IMPAIRMENTS. Ca’ Foscari abides by Italian Law (Law 17/1999; Law 170/2010) regarding support services and accommodation available to students with disabilities. This includes students with mobility, visual, hearing and other disabilities (Law 17/1999), and specific learning impairments (Law 170/2010). If you have a disability or impairment that requires accommodations (i.e., alternate testing, readers, note takers or interpreters) please contact the Disability and Accessibility Offices in Student Services at disabilita@unive.it