Financial Analysis
ikaya@gsu.edu.tr
Content
Objective
This course, which is aimed at Master of Business Administration students, has two main purposes. The first of these is to teach financial analysis topics and the other is to analyze scientific research and publications in this field. Within the scope of this course, students are provided with information on how to read financial statements. In addition, in the context of financial statement analysis, evaluation processes used to analyze the ability of businesses to fulfill their obligations, financial structures, financial performance and profitability, and to determine the suitability of their financial situations for investment, as well as financial analysis and control issues are taught. Scientific research and publications in the field of financial analysis are analyzed and students' research knowledge and skills in this field are developed.
Course Content
After equity analysis by ratios, cash flow analysis, short-term solvency analysis, profitability analysis and market ratios as part of financial statements and financial analysis techniques are examined.
Prediction of financial failure: The Altman Z-score model is examined. In the analysis of fraud indicators, the Beneish model and other analyses are considered.
Capital structure and long-term solvency are analysed, as well as the analysis of the impact per share on capital financing decisions and capital decisions.
Pro forma financial statements are prepared for financial forecasting.
Methods for determining business value are examined.
Emphasis is placed on the issues to be considered in inflation-adjusted financial statements as well as the importance of industry differences in the analyses.
Course Learning Outcomes
To have knowledge of financial analysis issues
To understand the analysis of liquidity, profitability, efficiency of operations and financial structure of companies
Understanding Financial Forecasts and Forecast Financial Statements
Reviewing the Performance Value of Stocks
Understanding capital and financing decisions in the context of changing global
Getting to know the field literature and gain skills in examining scientific research and publications markets
Teaching and Learning Methods
Lecture, case analysis, application examples and literature analysis
References
Fridson, M.; Alvarez, F. (2022) Financial Statement Analysis: A Practitioner's Guide, Fifth Edition; John Wiley & Sons, Inc.
Alexander, D.; Britton, A.; Jorissen, A. (2007); “International Financial Reporting and Analysis”, (3rd Edition), Thomson Learning.
Subramanyam, K. (2014) Financial Statement Analysis, Eleventh Edition, McGraw Hill.
Zutter, C.J.; Smart, S.B, (2022) Principles of Managerial Finance, Pearson International Edition, 16th Edition
Weekly Contents
| Week | Weekly Contents |
|---|---|
| 1 | Introduction to Financial Statements and Financial Analysis Techniques |
| 2 | Diagnosis of liquidity, efficiency of activities, financial structures and profitability of companies with ratio analysis |
| 3 | Cash Flow Analysis |
| 4 | Analysis of the solvency of short-term debt |
| 5 | Profitability Analysis |
| 6 | Perform stock analysis using market ratios |
| 7 | Predicting Financial Failure: Altman Z-Score Model |
| 8 | Fraud Indicators: The Beneish Model and Other Analytics |
| 9 | Analysis of the impact per share on capital financing decisions and the capital decision |
| 10 | Financial Forecast – Preparation of Forecast Financial Statements |
| 11 | Determination of Business Value |
| 12 | Items to Consider in the Inflation-Adjusted Financial Statements |
| 13 | Analysis of sectoral differences |
| 14 | International Financial Analysis, Management Planning and Control, and Financial Risk Management |
Assessment System
| Activities | Number | Contribution |
|---|---|---|
| Contribution of in-term studies to overall grade | 7 | 60 |
| Contribution of final exam to overall grade | 1 | 40 |
| Total | 8 | 100 |
| Activities | Number | Contribution |
|---|---|---|
| Assignments | 5 | 5 |
| Presentation | 1 | 20 |
| Midterm Examinations (including preparation) | 1 | 30 |
| Project | 0 | 0 |
| Laboratory | 0 | 0 |
| Other Applications | 0 | 0 |
| Quiz | 2 | 5 |
| Term Paper/ Project | 0 | 0 |
| Portfolio Study | 0 | 0 |
| Reports | 0 | 0 |
| Learning Diary | 0 | 0 |
| Thesis/ Project | 0 | 0 |
| Seminar | 0 | 0 |
| Other | 0 | 0 |
| Make-up | 0 | 0 |
| Total | 9 | 60 |
Relation of Proficiency
| No | Program Learning Outcomes | Contribution | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| 1 | At the end of the program successful students, Will have a good command of the concepts and theories of different areas of Business Administration such as Production, Marketing, Accounting/Finance, Management and Organizational Behavior and will have an integrative point of view to understand the interaction between these domains. | X | ||||
| 2 | Will be able to grasp the operation of different functions (Accounting /Finance, Marketing, Human Resources, and Management) of organizations and also will be able to create hypotheses for research proposals. | X | ||||
| 3 | Will be able to do research for determining changes, diagnosing problems and developing solutions in business world. | X | ||||
| 4 | Will have a command of qualitative and quantitative research methodology. | X | ||||
| 5 | Will be able to conduct statistical analyses and interpret the results. | X | ||||
| 6 | Will have a command of scientific studies (writing articles, presenting papers) | X | ||||
| 7 | Should have mastery of at least one foreign language at a scientific level to be able to realize cross-cultural studies. | X | ||||
| 8 | Should be able to update his/her professional knowledge and skills continuously to be able to adapt to changes in scientific area. | X | ||||
| 9 | Should be able to do team work in researches and studies and contribute to information flow. | X | ||||
| 10 | Will be able to have a holistic approach to Business Administration and prepare a thesis on a special area of the field. | X | ||||
| 11 | être en mesure d’avoir une perspective globale de la gestion et de fournir une thèse en se spécialisant dans une des sphères de ce domaine. | X | ||||
ECTS
| Activities | Number | Period | Total Workload |
|---|---|---|---|
| Class Hours | 14 | 3 | 42 |
| Working Hours out of Class | 14 | 4 | 56 |
| Assignments | 5 | 2 | 10 |
| Presentation | 1 | 1 | 1 |
| Midterm Examinations (including preparation) | 1 | 15 | 15 |
| Project | 0 | 0 | 0 |
| Laboratory | 0 | 0 | 0 |
| Other Applications | 0 | 0 | 0 |
| Final Examinations (including preparation) | 1 | 18 | 18 |
| Quiz | 2 | 4 | 8 |
| Term Paper/ Project | 0 | 0 | 0 |
| Portfolio Study | 0 | 0 | 0 |
| Reports | 0 | 0 | 0 |
| Learning Diary | 0 | 0 | 0 |
| Thesis/ Project | 0 | 0 | 0 |
| Seminar | 0 | 0 | 0 |
| Other | 0 | 0 | 0 |
| Make-up | 0 | 0 | 0 |
| Total Workload | 150 | ||
| Total Workload / 25 | 6.00 | ||
| Credits ECTS | 6 | ||