Overall objectives:

1 - Interpret financial statements effectively, using financial pieces.
2 - Use different types of economic and financial indicators, and ensure their calculation and interpretation.
3 - Briefly assess business risk and bankruptcy, assess and detect the danger signs of a company at business risk and insolvency.
4 - Interpret indicators, from an individual and integrated perspective.
5 - Prepare a diagnostic report of the organization's economic and financial context.
6 - Develop critical reasoning about CU methods and interpretation of results, in the context of the analysis of the economic and financial situation of companies.

Syllabus:

1 - Financial analysis.
1.1 - Framework and objective of the financial analysis.
1.2 - Financial function, financial analysis and financial management.
1.3 - Users of financial analysis.
2 - Base Instruments of Financial Analysis.
2.1 - Income statement.
2.2 - Balance.
2.3 - Statement of changes in equity.
2.4 - Statement of cash flows.
2.5 - Appendix.
2.6 - Management report.
2.7 - Other sources of financial information.
2.8 - Limitations of accounting documents.
3 - Ratio Methods - A Financial Analysis Technique.
3.1 - Types of ratios.
3.2 - Definition of some ratios.
3.3 - Basis for comparing ratios.
3.4 - Static analysis and dynamic analysis.
3.5 - Use of ratios.
3.6 - Limitations of ratios.
4 - Analysis of the quality of the results.
4.1 - Quality of results and danger signs.
4.2 - Quality of results and environment.
4.3 - Quality of results and activity sector.
5 - Risk analysis.
5.1 - Risk and risk analysis.
5.2 - Effect of diversification on risk.
5.3 - Attitudes towards risk.
5.4 - Types of risks.
6 - Budgeting and/or forecasting.
6.1 - Results, Balance Sheet, Treasury Budgets.
7 - Financial balance.
7.1 - Financial balance concept.
7.2 - Short-term financial balance.
7.3 - Static approach.
7.4 - Dynamic approach.
7.5 - Short-term financial balance indicators.
7.5.1 - Activity ratios and indicators.
7.5.1.1 - Short-term activity ratios.
7.5.1.2 - Medium and long-term activity ratios.
7.6 - Medium and long-term financial balance.
8 - Profitability.
8.1 - Return on investment.
8.2 - Profitability of own capitals.
8.3 - Integrated profitability analysis.
8.4 - Fundamental equation of economic profitability.
8.5 - DuPont Analysis.
8.6 - Multiplicative model of return on equity.

Literature/Sources:

Fernandes, C., Peguinho, C., Vieira, E. & Neiva, J. , 2013 , Análise Financeira: Teoria e Prática: Aplicação no âmbito do SNC, 2.ª ed. , Edições Sílabo
Nabais, C. e Nabais, F. , 2011 , Prática Financeira: I: Análise Económica & Financeira 6.ª ed. , Lidel
Neves, J. , 2011 , Análise e Relato Financeiro ? Uma Visão Integrada de Gestão , Texto Editores
Subramanyam, K. & Wild, J. , 2008 , Financial Statement Analysis, 10th ed. , McGraw-Hill/Irwin

Assesssment methods and criteria:

Classification Type: Quantitativa (0-20)

Evaluation Methodology:
The evaluation of this Curricular Unit is carried out through the completion of two frequencies with a weight of 50% each. The minimum grade is 8 values for each one. Both frequencies can be recovered in resource or special season.