Publication in the Diário da República: Despacho nº 1887/2016 - 05/02/2016
5 ECTS; 2º Ano, 1º Semestre, 60,0 TP + 15,0 OT , Cód. 964018.
Lecturer
- Bruno Manuel de Almeida Santos (1)(2)
(1) Lead Professor
(2) Teaching Professor
Prerequisites
Not applicable.
Objectives
By the end of the course unit, the student should be able to:
- understand the financial cycles of organizations and calculate the financial requirements inherent to them.
- interpret information enabling the analysis of the financial position and operating results of any organization.
- assist in decision-making regarding various financing and investment options, as well as in operational management, considering the impacts on the organization's performance, financial balance, sustainability, risk, and profitability.
Program
Background: financial function, financial analysis and financial management.
Financial position: understand the balance sheet:
- Notion of heritage, its composition and effects of variations;
- Concept of asset;
- Asset components;
- Distinction between current and non-current;
- Definition of liabilities and their components;
- Equity items.
Performance: The income statement and the link with the balance sheet:
- Income;
- Expenses.
The construction of the balance sheet and income statement.
- Analysis of balance sheet content and income statement;
- Practical application exercises.
Treasury: The short-term financial perspective:
- Differences between income and receipts, expenses and payments;
- Classification of activities: Operational, Financing and Investment.
Analysis of a company's financial balance:
- Minimum financial balance;
- Existing working capital;
- Liquidity ratios.
Understand the economic and financial impact of commercial actions:
- Average period of receipts;
- Discounts and the explicit and implicit financial cost;
- The average payment term;
- The purchase price and its components;
- The effects of discounts obtained;
- Management of returns;
- The average storage period (stock);
- Rotation of goods in warehouse;
- Entry and exit costs;
- Security stock.
The notion of working capital.
The issue of financial balance.
The composition of the functional balance sheet.
Working capital needs and the exploration cycle.
Bank financing.
The neutral of sales.
Operating profitability and the associated risk.
Financing Strategies.
Know some key indicators:
- The various results: EBITDA, Cash Flow, Net Income for the Period.
Know how to use and prepare a budget:
- The budget process;
- The forecast of activities: articulation and interconnection between the various partial budgets.
Establish forecasts for the various budgets:
- The commercial budget;
- The production budget;
- The general expenses budget;
- The staff expenses budget;
- Budget of new and replacement investments;
- Depreciation and budget;
- Budget and financing;
- The exploration budget.
Preparation of forecast maps.
Introduction to management accounting:
- Industrial cost of production;
- Industrial cost of products sold;
- Production variation;
- Income statement by functions.
Evaluation Methodology
Continuous Assessment: Completion of an assessment test (weighted at 70%) and a group project (weighted at 30%) towards the final grade. Students will pass the course by achieving a grade of 9.5 or higher, based on the average of the test and the group project.
Exam-based Assessment ??Regular Period: Written exam. Students achieving a grade of 10 (ten) or higher will be considered to have passed the course.
Bibliography
- Couto, G. (2021). Finanças Empresariais Teoria e Prática. (Vol. 1). Lisboa: Rei dos Livros
- Fernandes, C. e Vieira, E. e Neiva, J. e Peguinho , C. (2022). Análise Financeira Teoria e Prática. (Vol. 1). Lisboa: Edições Sílabo
- HBR, G. (2020). Guia HBR: Finanças Elementares para Gestores. Lisboa: Actual Editora
- Magalhães, J. (2020). Finanças para não financeiros. (Vol. 1). Lisboa: Lisbonpress
- Martins, A. e Cruz, I. e Augusto, M. e Silva, P. e Gonçalves, P. (2017). Manual de Gestão Financeira Empresarial. Forte da Casa, V. F. de Xira: Escolar Editora
- Melicher, R. e Norton, E. (2020). The economic and financial analysis, both in the short and medium/long term, conveys the company's reality, given the market in which it operates, and allows the application of the most convenient and competitive strategies. (Vol. 17th Edition). UK: Wiley
- Mota, A. e Soares, H. e Barroso, C. e Laureano, L. (2014). Introdução às Finanças - Fundamentos de Finanças com Casos Práticos Resolvidos e Propostos. Lisboa: Edições Sílabo
- Silva, E. (2013). Gestão Financeira - Análise de Fluxos Financeiros. Lisboa: Vida Económica
- Silva, J. e Ferreira, P. (2018). Princípios de Gestão Financeira. Lisboa: Rei dos Livros
Teaching Method
The exhibition and interactive type practical classes with active participation of students in solving practical exercises. Book up about 50% of the effective time classes, for practical applications which include calculations.
Software used in class
Not applicable.
