Financial Analysis

5 ECTS; 2º Ano, 1º Semestre, 60,0 TP

- Pedro Augusto Santana Figueiredo

Not applicable.

Students should be able to apply financial analysis in business: the analysis of financial stability, profitability and risk.

1. Introduction: object and framework of Financial Analysis
2. Instruments base of Financial Analysis :
2.1. Accountability
2.2. Documents base of Financial Analysis
2.3. Preparation of accounting documents for Financial Analysis
2.4. The method of ratios
3. Financial soundness and financial stability
4. Efficiency and profitability :
4.1. The financial cycle of exploitation
4.2. Income statement analysis
4.3. Return on invested capital
4.4. Return on equity
5. The operational and financial risk

Evaluation Methodology
- Final test with 70% weighting
- Group works with two presentations, 15 % weighting each one
Continuous assessment requires completion of all assessment tasks.
Minimum mark 9,5 out of 20.

- Neves, J. (2014). Análise e Relato Financeiro - Uma visão integrada de gestão. Lisboa: Texto Editores
- Menezes, H. (1995). Princípios de Finanças Empresariais. Lisboa: Presença
- Damodaran, A. (2001). corporate finance, theory and practice. USA: John Wiley
- Brealey, R. e Myers, S. (1995). Princípios de Finanças Empresariais. Lisboa: Mac Graw Hill

Method of interaction
Lectures focusing on resolution of practical cases.

Software used in class