Financial Statement Analysis (5cr)

Intro

How do investors learn enough about a company to know whether or not they should invest in? Or how can financial managers assess success of their own firm and compare it to the performance of competitors? One common way is to prepare thorough financial statement analysis and this is what you will learn on this course. You also have a chance to improve your presentation skills and get tips how to make sure that you can deliver financial information efficiently.

Learning objectives

After having completed this course or attained an equivalent competence level, the student:
- is able to analyze financial statements with commonly known tools and techniques in this field
- is able evaluate also non-financial information (ESG) provided by the companies
- is able to recognize differences in most common accounting standards and analyze their impact on the analysis
- is able to integrate sustainability reporting information to financial statement analysis in order to build broader view of the company
- is able to use visualization tools and storytelling techniques in presenting financial information to stakeholders
- is able to analyze the financial statements and to make forecasts
- is able to plan and give recommendations to business operations through insights gathered by collecting and analyzing relevant financial and non-financial data from annual reports)

Contents

- financial statement analysis including the notes to financial statements
- key ratio analysis
- non-financial data, sustainability reports
- presenting financial information
- visualization and storytelling

Implementation methods, demonstration and Work&Study

1. Implementation methods:
CONTACT / CONTACT BLENDED
Descriptions of implementation methods can be found in Haaga-Helia's website: https://www.haaga-helia.fi/en/implementation-types.

2. Information about demonstration and work & study:
You can complete the course unit by demonstrating or by Work&Study even if the course unit doesn't have DEMO or WORKSTUDY implementations. More information about recognition of learning at Haaga-Helia's website: https://www.haaga-helia.fi/en/career-planning/recognition-learning.

3. Information about demonstration assignment:
If you have already acquired the required learning outcomes, you can show your competences with a demonstration. If you have any questions, please contact the responsible teacher. More information and instructions regarding the recognition of learning: https://www.haaga-helia.fi/en/recognition-learning.
First, please contact teacher in charge by email and explain how you have gained knowledge of each of the learning goals. Second, the teacher will let you know if you are approved to give the demonstration. Third, once you have the approval, you will be added to the RPL Moodle. You need to prepare a financial statement analysis report of a target company (preferably a listed company) and comparison to its peers (two peer companies is sufficient). Show your skills on each of the course topics. Refer to literature in your report. Submit your report prepared in Haaga-Helia reporting layout (long report template) with the excel calculations into the RPL Moodle. The report will be graded with grade 0-5. Recommended length of the report is approximately 15 pages. Remember to include also the excel-file in your submission.

Learning materials

Harrison, Walter, T. et al. Financial Accounting, Global Edition. Available in ebook from: VitalSource Bookshelf, (12th Edition). Pearson International Content, 2023.

Thomas R. Robinson, Elaine Henry, Wendy L. Pirie, Michael A. Broihahn, Anthony T. Cope International Financial Statement Analysis, 3rd Edition. Available in e-book.

Other material instructed by the course teacher.

Lähtötaso ja sidonnaisuudet muihin opintojaksoihin

Following BBA key and common competence courses should be completed or similar knowledge and skills gained prior to this course:
ECO001HH1AE
ECO002TR1AE

Assessment criteria - grade 1

When the implementation type of the course is CONTACT, ONLINE or BLENDED it is required that the student is present during those teaching hours that are marked in the study schedule. If you are absent more than 25 %, your grade will be lowered by one. If you are absent more than 50 %, the course is failed.

Student
- is able to recognise some financial statement analysis methods and knows how to apply them
- is able to identify standards and principles applied in financial statements
- is able to present some financial information

Assessment criteria - grade 3

Student
- is able to analyze financial statements with key ratios as well as link them to the strategic goals of a company
- is able to utilize non-financial information in the analysis
- is able to recognize the value of notes to the financial statements in the analysis
- is able to present financial information and utilize visualization tools with ease

Assessment criteria - grade 5

Student
- is able to analyze financial statements with key ratios as well as link them to the strategic goals of a company
- is able to evaluate financial statement analysis in risk assessment of a company
- is able to implement non-financial information into the analysis like e.g. sustainability report information
- is able to utilize information from notes to the financial statements in the analysis
- is able to present financial information and utilize visualization tools and storytelling convincingly