FINANCIAL STATEMENTS ANALYSIS

Shandong University of Finance and Economics

Course Code：

Total Number of Instruction Hours: 51

Number of Credits：3

About this Course

Financial statements analysis is an introductory undergraduate course that teaches the fundamentals of financial statements analysis methods. All the students of SDUFE who majored in accounting, financial management and other related disciplines are required to take this course. This course is a comprehensive course that combines economics, management, accounting, financial management, and auditing. It is an indispensable and important component in the professional knowledge construction and professional quality training of accounting and financial management students. While paying attention to the introduction of foreign advanced analytical methods and tools, taking listed companies as an example, students can use financial analysis methods and theoretical knowledge framework to analyze financial statements analysis of listed companies.

By the end of the course, you will be able to grasp systematically the methods of company financial evaluation and analysis: analyzing the financial status of the company through balance sheet analysis, profit quality analysis, cash flow quality analysis, financial indicator analysis, and comprehensive analysis of financial statements.

Prerequisites and Preparation

Accounting, financial management, auditing.

Course Goals

After completing this course, students should have developed a range of skills enabling them to understand company financial statement and use analysis methods to analyze financial condition and operating performance of company.

By the end of this course, students should be able to:

·         Master the basic theory and environmental knowledge of financial statements analysis at home and abroad;

·         Grasp the basic structure of financial statements and the principles and methods of case analysis;

·         Using the analysis methods of financial statements to analyze financial status and operating performance of listed companies;

·         Be familiar with the comprehensive analysis of financial statements;

·         Understand impact of other factors on financial statements and their analysis.

Course Components and Requirements

·         Assigned readings

·         Lectures

·         Presentation

·         One financial statements analysis into groups of 4

·         Final Exam

Assigned Readings

Topical material and additional reading for class discussion may be assigned during the semester.

One financial statements analysis into groups of 4

In this class, students are grouped into groups of 4 students. They download the financial reports of listed companies by themselves, and analyze the company's balance sheet, income statement and cash flow statement, and analyze the solvency, profitability, operational capabilities and development capabilities of the company. In the analysis process, students need to use trend analysis, ratio analysis and factor analysis methods, and compare with another listed company in the same industry. Explain the data in detail, write a financial analysis report, and make a presentation.

Deliverables and Grading

Method of evaluation and grading:

1）Class performance and attendance will count for 10% of the final course grade.

2）There will be one financial statements analysis into groups of 4 which count as 20% of the final course grade.

3）There will also be a two hour final, which will be cumulative and cover all of the course materials. This will count as the remaining 70% of the final course grade.