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Course Outline For Business Analysis

The document discusses an introductory class on analyzing financial statements to evaluate a company's performance and financial position. The class will first look at numbers from the income statement, define commonly used metrics like gross profit and net income, and explore how numbers may need adjustment to indicate future performance. It will also cover analyzing the balance sheet to understand a company's resources and capital structure, as well as using ratios to evaluate growth, margins, efficiency and leverage. Students will practice these analysis techniques by comparing two listed companies.

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Manjur Hossain Shovon
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83 views3 pages

Course Outline For Business Analysis

The document discusses an introductory class on analyzing financial statements to evaluate a company's performance and financial position. The class will first look at numbers from the income statement, define commonly used metrics like gross profit and net income, and explore how numbers may need adjustment to indicate future performance. It will also cover analyzing the balance sheet to understand a company's resources and capital structure, as well as using ratios to evaluate growth, margins, efficiency and leverage. Students will practice these analysis techniques by comparing two listed companies.

Uploaded by

Manjur Hossain Shovon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Class 1:

The numbers from the income statement are probably the most widely analyzed and so
that is a good place to start. In this case study session, we look at the reported figures,
define the most used and analyze them before exploring why these numbers may need
adjusting if we are to use them to indicate what the future performance is likely to be.

 Analysis of the income statement


o Capitalization vs. expense
o Classification of expenses: Cost of sales, operating expenses
o Revenue recognition
o Different types of reported profit metric
 Gross profit, operating profit, net profit, EPS
o Cleaning up the reported numbers
 Exceptional and other one-off items
 Core vs non-core
o Profit metrics more indicative of future performance (and why)
 EBIT, EBITA, EBITDA, underlying net income/EPS
 Ratio analysis
o Growth rates
o Margins
o Interest cover
 Exercise: Carry out ratio analysis on two listed companies, making comparisons
between the two.

Class 2:

Analysis of the Balance Sheet


What are the resources at hand for the business to generate its profit? The morning
session will focus on the analysis of the balance sheet, understanding the rules behind
what gets recognized, at what value and how that value can fluctuate over time.

 Analysis of the balance sheet


o Non-current assets
 Intangibles – what can be recognized
 Tangibles – carrying values, useful lives and impairments
o Current assets and working capital
o Liabilities and provisions
o The capital structure
 Debt
 Equity capital and reserves
 Pensions
 Non-controlling interests
 Investments – AFS, JVs and other acronyms; why are they part of
the capital structure
 Ratio analysis
o Net debt, Debt/Equity, Debt/Capital
o Working capital cycle – Inventory days, Receivable days, Payable days
o Balance sheet and income statement combined analysis
 Efficiency of use of resources
 Return on equity
 Return on capital
 Capital structure
 (Net) debt / EBITDA
 Exercise: Carry out further ratio analysis on two listed companies, making
comparisons between the two.

Class -3

Introduction to project feasibility study


1. Discounted Cash Flow Model

2. Accounting rate of return

3. Pay Back Period

4. Project Financial statement preparation

Class -4
Introduction of data analysis tools & Packages
a) Excel
b) Access
c) R Program
Use of different Tools for business analysis
Class 5:
Introduction of Excel for performance analysis
a) Industry comparison and decision making for business through different analysis
through excel.
b) Feasibility study in excel

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