Module ASB-4406:
Financial Analysis

Module Facts

Run by Bangor Business School

15 Credits or 7.5 ECTS Credits

Semester 2

Organiser: Prof Aziz Jaafar

Overall aims and purpose

To analyse the techniques that are used to evaluate a company's financial position and performance, and develop a critical awareness of the uses of financial data by capital markets for valuation purposes.

Course content

Balance sheet and income statement analysis; Financial ratio analysis and inter-firm comparison; Trend analysis and financial forecasting; Analysis of profitability and growth; The quality of financial statements, and using financial statements in valuation; Cash accounting, accrual accounting and discounted cash flow valuation; Pricing book values and earnings; Assessment of credit and equity risk.

Assessment Criteria

threshold

Displays a basic understanding of the main issues in financial anlysis and investment analysis

good

Displays a sound understanding of interfirm comparison, trend analysis and valuation models, and an ability to write analytically on specific issues.

excellent

Demonstrates a critical approach towards the appreciation of interfirm comparison and trend analysis, and demonstrates the ability to evaluate the implications of valuation models, illustrating arguments through the use of relevant supporting evidence drawn from the established literature.

Learning outcomes

  1. Apply appropriate methodologies in order to produce inter-firm comparisons of performance, and comparisons between the performance of the same firm over time.

  2. Appreciate the uses of financial information by capital markets.

  3. Demonstrate competence for the purposes of equity valuation.

  4. Apply basic and advanced techniques for the purposes of financial forecasting and the assessment of equity and credit risk.

Assessment Methods

Type Name Description Weight
GROUP ASSIGNMENT 25
FINAL EXAM MARK 75

Teaching and Learning Strategy

Hours
Lecture

3 hours of lectures per week

30
Practical classes and workshops

Computer workshop - Thomson One Banker

2
Private study

Preparing for lectures, workshop , coursework and final exam

118

Transferable skills

  • Literacy - Proficiency in reading and writing through a variety of media
  • Numeracy - Proficiency in using numbers at appropriate levels of accuracy
  • Computer Literacy - Proficiency in using a varied range of computer software
  • Self-Management - Able to work unsupervised in an efficient, punctual and structured manner. To examine the outcomes of tasks and events, and judge levels of quality and importance
  • Exploring - Able to investigate, research and consider alternatives
  • Information retrieval - Able to access different and multiple sources of information
  • Inter-personal - Able to question, actively listen, examine given answers and interact sensitevely with others
  • Critical analysis & Problem Solving - Able to deconstruct and analyse problems or complex situations. To find solutions to problems through analyses and exploration of all possibilities using appropriate methods, rescources and creativity.
  • Presentation - Able to clearly present information and explanations to an audience. Through the written or oral mode of communication accurately and concisely.
  • Teamwork - Able to constructively cooperate with others on a common task, and/or be part of a day-to-day working team
  • Argument - Able to put forward, debate and justify an opinion or a course of action, with an individual or in a wider group setting

Subject specific skills

  • knowledge of some of the contexts in which accounting can be seen as operating (examples of contexts include the legal, ethical, social and natural environment; the accountancy profession; the business entity; the capital markets; the public sector)
  • knowledge of the main current technical language and practices of accounting (for example, recognition, measurement and disclosure in financial statements; managerial accounting; auditing; taxation) in a specified socio-economic domain
  • knowledge of some of the alternative technical languages and practices of accounting (for example, alternative recognition rules and valuation bases, accounting rules followed in other socio-economic domains, alternative managerial accounting approaches to control and decision-making)
  • skills in recording and summarising transactions and other economic events; preparation of financial statements; analysis of the operations of business (for example, decision analysis, performance measurement and management control); financial analysis and projections (for example, analysis of financial ratios, discounted cash flow analysis, budgeting, financial risks)
  • knowledge of contemporary theories and empirical evidence concerning accounting in at least one of its contexts (for example, accounting and capital markets; accounting and the firm; accounting and the public sector; accounting and society; accounting and sustainability) and the ability to critically evaluate such theories and evidence age
  • knowledge of theories and empirical evidence concerning financial management, risk and the operation of capital markets (in cases of degrees with significant finance content).
  • An ability to understand financial statements, and a basic appreciation of the limitations of financial reporting practices and procedures (eg financial statement analysis; the relation between cash flow accounting and accrual accounting; discretionary accounting practices).

Courses including this module

Compulsory in courses:

Optional in courses: