Course Outline

AY-2024-25

Program: (√ )
Course Title
Academic Term
MBA ____
Python and Statistics for Financial Analysis Term I ☐ Term II ☐ Term III ☐
MBA-DBM __√__ Term IV √ Term V ☐ Term VI ☐
MBA- HHM ____

Functional Area Finance &Accounting Core ☐ Elective √☐

Course Coordinator Teaching Members

Course Revision Record

Version Version Date Recommendation

Credit Contact 15 Learning 45 Office 9.30am-

Hours Hours Hours 6.00pm

Contact Details 7095624373

Course Email [email protected]

Course Descriptor

Course The course aims to provide participants with a solid foundation in statistical
Overview analysis and Python programming for financial data. By the end of the course, the
(200 words) participants will be equip with the skills to analyze financial statements, perform
valuation using various models, and leverage Python to automate and enhance the
business analysis process. And conduct financial analysis and valuation for
informed business decision-making using real-world data and Python tools.

Prerequisites/ Basic understanding of finance and financial statements

Co-requisites Basic knowledge of Python programming

Learning
Objectives 1. Understand and Interpret Financial Statements: Students will learn to
analyze balance sheets, income statements, and cash flow statements,
extracting critical financial insights and performance indicators.
2. Apply Financial Ratios and Metrics for Business Evaluation: Students will
gain proficiency in calculating and interpreting profitability, liquidity,
leverage, and efficiency ratios using Python to assess a firm's financial
health.
3. Develop and Implement Valuation Models: Participants will build
valuation models, including Discounted Cash Flow (DCF) and Comparable
Company Analysis (Comps), using Python to estimate the value of a
business.(PLO2b)
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 Course Outline
AY-2024-25

4. Leverage Python for Data-Driven Financial Analysis:Students will utilize

Python libraries (such as pandas and NumPy) to automate data processing,
model financial scenarios, and conduct time-series analysis to predict
trends and inform valuation decisions..

PLO PLO 2a: IIMBG graduates will be able to analyze situations critically, identify the
problem, distinguish alternative solutions, and evaluate and decide on appropriate
solutions.

Teaching
Methods Interactive Lectures, and case analysis

For Internal Use Only

Sessi Reading and Instructional

on
Topic
Case Methodology
1 Introduction to Time-Series Analysis
i. Notebook setup: Configuring the Python
environment for time-series analysis.
ii. Time-series data and the Date time Index:
Interactive Lectures,
Understanding and creating time-series with
Hands-On Coding
specific frequencies.
Exercises, Real-
iii. Shifting and lagging time-series data: Techniques
World Applications
to manipulate time-series data.
iv. Frequency conversion and resampling of time-
series: Adjusting and summarizing time-series
data.
2 Introduction to Financial Modelling
Interactive Lectures,
Python as a tool used for Financial Analysis;
R1,2 Hands-On Coding
Company Analysis, Ratio Analysis using Python,
Exercises, Real-
Industry Analysis, Competitor Analytics
World Applications
3-4 Statistical methods used for Forecasting
Profit and Loss Forecast and Balance Sheet
Forecast
Interactive Lectures,
Forecasting Sales – Bottom-up v/s Top-down
Hands-On Coding
forecasting, forecasting sales of existing products R3,4
Exercises, Real-
and services
World Applications
forecasting costs, CAPEX and depreciation
Forecasting working capital and Funding
needs
5-6 Business Valuation using Python R 5-13 Interactive Lectures,
Copyright© Indian Institute of Management Bodh Gaya.
Prior permission must be obtained from Indian Institute of Management Bodh Gaya for use in any other purposes.
 Course Outline
AY-2024-25

DCF method Hands-On Coding

Free Cash Flow and Intrinsic value Exercises, Real-
Estimating Terminal Value World Applications
Relative Valuations
Valuations of digital business
7 Sensitivity Analysis
1D Vs 2D Sensitivity analysis Interactive Lectures,
selecting variables to change, Hands-On Coding
assigning range of values Exercises, Real-
constructing 2D sensitivity analysis World Applications

8 Scenario Analysis
Deciding number of scenarios
Identifying various input variables for each
Interactive Lectures,
scenario, assigning values to each input variables
Hands-On Coding
Identifying output variables
Exercises, Real-
Building the scenario framework and analysis
World Applications
Discussion of scenario from digital business
perspective

9-10 Monte Carlo Simulation

Interactive Lectures,
Building uncertainty in modelling
Hands-On Coding
Probabilities, Cumulative probabilities,
Exercises, Real-
Identify key risk variables for a company
World Applications
Simulation runs
Refer Institutional policies to procure materials

Text Books

Other Reference 1. Python for Finance: Analyze Big Financial Data" by Yves Hilpisch
Books and 2nd edition O'Reilly Media
Materials 2. Python for Finance: Mastering Data-Driven Finance" by Yves
Hilpisch O'Reilly Media
3. Financial Statement Analysis: A Practitioner’s Guide, Martin S.
Fridson, Fernando Alvarez, 2022, 5th Edition, Wiley
4. Financial Statement Analsis, K R Subramanyam, and John J. Wild,
2009, 10th Edition, McGraw Hill.
5. Analysis of Financial Statements - Charles H.Gibson - South Western
CENGAGE Learning (Publication)
6. K. Palepu, P. Healy, V. Bernard and E. Peek, Business Analysis and
Valuation: Using Financial Statements Cengage Publications; 5th
edition(PHP)
7. Damodaran A. Investment valuation: Tools and techniques for
determining the value of any asset. John Wiley & Sons 3rd edition
8. Michael Samonas "Financial Forecasting, Analysis, and Modelling: A
Copyright© Indian Institute of Management Bodh Gaya.
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 Course Outline
AY-2024-25

Framework for Long-Term Forecasting" ,Publisher: Wiley

Refer Institutional policies to procure materials

Cases

Refer Institutional policies to procure materials

Reading 1. Finding Meaning in Financial Statements: A Look Behind the Numbers

5795BC-PDF-ENG
2. Basic Ratio Analysis and Equity Valuation 1047BC-PDF-ENG
3. Financial Analysis 1043BC-PDF-ENG
4. Six Rules for Effective Forecasting R0707K-PDF-ENG
5. Valuation Methods and Discount Rate Issues A Comprehensive
Example 9-205-116
6. What's Your Real Cost of Capital? R0210J-PDF-ENG
7. Do You Know Your Cost of Capital? R1207L-PDF-ENG
8. Introduction to Cash Flow Valuation Methods 9-295-155
9. Note on Free Cash Flow Valuation Models HBS 9-288-023
10. Fundamental Enterprise Valuation Free Cash Flow 9-801-126
11. How Much Money Does Your New Venture Need? 86314-PDF-ENG
12. The Art and Science of Valuation 1047BC-PDF-ENG
13. Note on Cash Flow Valuation Methods: Comparison of WACC, FTE,
CCF and APV Approaches 910N31-PDF-ENG

Simulations ---
Refer Institutional policies to procure materials

Evaluation Components Marks PLO Assessed

Mid-Trimester Exam
End-Trimester Exam 40% PLO2a
Individual Assignment 10%

Class Participation 15%

Quiz 15%
Group Assignment/ project 20%
Total 100 Marks
Refer academic policies and procedures handbook

Course Expectation Students are expected to actively participate in all lectures, discussions,
from the students and hands-on coding exercises. Engagement in these activities is crucial
for mastering the course material. Students are expected to practice coding
regularly outside of class hours. This includes working on provided
Copyright© Indian Institute of Management Bodh Gaya.
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 Course Outline
AY-2024-25

assignments, case studies, and using Python to analyze financial data

independently

Refer academic policies and procedures handbook

Academic Standard IIM Bodh Gaya insists on academic honesty. Fabrication, plagiarism,
and Honesty deception, and so on are unacceptable and would be considered academic
misconduct

Refer Program Specific manuals

Other Relevant ---

Information

Refer Program Specific policy manuals

Grading or Evaluation tools other than Examinations

Course policies

Please refer student guidelines

1. Assignment Schedule

Announcement
Assignment/Presentation/Case Discussion Due Date/Session
Session

Course requirements
Students are required to come prepared for each session by reading the respective reference material given in
this course plan.

Copyright© Indian Institute of Management Bodh Gaya.

Prior permission must be obtained from Indian Institute of Management Bodh Gaya for use in any other purposes.
 Course Outline
AY-2024-25

For Internal Use Only

Detailed Session Plan (Compulsory)

Sessio
n Topic Reading and Case Assignments Due
No:

Copyright© Indian Institute of Management Bodh Gaya.

Prior permission must be obtained from Indian Institute of Management Bodh Gaya for use in any other purposes.
 Course Outline
AY-2024-25

Copyright© Indian Institute of Management Bodh Gaya.

Prior permission must be obtained from Indian Institute of Management Bodh Gaya for use in any other purposes.