COURSE INFORMATION Course Title: FINANCIAL ANALYSIS

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 415	A	1	3	0	0	3	7.5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	Dr. Armanda Tola atola@epoka.edu.al
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Dr. Martins Priede mpriede@epoka.edu.al , Monday 15:00-17:00
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Study program: (the study for which this course is offered)	Master of Science in Banking and Finance
Classroom and Meeting Time:	E211 - Monday 18:00 - 20:45 PM
Teaching Assistant(s) and Office Hours:	NA
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:	75 %
Course Description:	Financial Analysis course provides comprehensive information on financial analysis in areas of planning and control. This course qualitatively and quantitatively defines, reviews, and illustrates the principles of corporate finance, including: profit/loss, asset and cash management, operational budgets, cost analysis, profitability, leverage, and decision and risk. It presents various industry approaches, cases, means and methods used to meet long-term and short-term corporate goals.
Course Objectives:	This course aims to give students the necessary understanding and tools for analysis of financial statements. These skills include evaluating companies' liquidity, profitability and solvency. Students will also become familiar with risk analysis, investing and financing activities.

BASIC CONCEPTS OF THE COURSE

1

TBD

COURSE OUTLINE

Week	Topics
1	Chapter 1: Overview of Financial Reporting, Financial Statement Analysis, and Valuation (This chapter is focused on: 1.1 Overview of Financial Statement Analysis 2, 1.2 Step 1: Identify the Industry Economic Characteristics 8, 1.3 Step 2: Identify the Company Strategies 16, 1.4 Step 3: Assess the Quality of the Financial Statements 18, 1.5 Step 4: Analyze Profitability and Risk 37, 1.6 Step 5: Prepare Forecasted Financial Statements and Step 6: Value the Firm 43, 1.7 Role of Financial Statement Analysis in an Efficient Capital Market 44, 1.8 Sources of Financial Statement Information 47) (Pages 2-66).
2	Chapter 2: Asset and Liability Valuation and Income Recognition (This chapter is focused on: 2.1 The Mixed Attribute Measurement Model 76, 2.2 Asset and Liability Valuation and the Trade-Off between Relevance and Representational Faithfulness 77, 2.3 Income Recognition 88, 2.4 Income Taxes 94, 2.5 Framework for Analyzing the Effects of Transactions on the Financial Statements 105) (Pages 67-107).
3	Chapter 3: Income Flows versus Cash Flows: Understanding the Statement of Cash Flows (This chapter is focused on: 3.1 Purpose of the Statement of Cash Flows 124, 3.2 Purpose of the Statement of Cash Flows 127, 3.3 Understanding the Relations among Net Income, Balance Sheets, and Cash Flows 134, 3.4 Preparing the Statement of Cash Flows 149, 3.5 Usefulness of the Statement of Cash Flows for Accounting and Risk Analysis 159) (Pages 109-166).
4	Chapter 4: Profitability Analysis (This chapter is focused on: 4.1 Overview of Profitability Analysis Based on Various Measures of Income 190, 4.2 Return on Assets (ROA) 201, 4.3 Return on Common Shareholders’ Equity (ROCE) 207, 4.4 Economic and Strategic Determinants of ROA and ROCE 215, 4.5 Benefits and Limitations of Using Financial Statement Ratios 240) (Pages 167-244).
5	Chapter 5: Risk Analysis (This chapter is focused on; 5.1 Disclosures Regarding Risk and Risk Management 278, 5.2 Analyzing Financial Flexibility by Disaggregating ROCE 283, 5.3 Analyzing Short-Term Liquidity Risk 293, 5.4 Analyzing Long-Term Solvency Risk 301, 5.5 Analyzing Credit Risk 305, 5.6 Analyzing Bankruptcy Risk 309, 5.7 Measuring Systematic Risk 318) (Pages 245-311).
6	Chapter 6: Accounting Quality (This chapter is focused on; 6.1 Accounting Quality 350, 6.2 Earnings Management 355, 6.3 Recognizing and Measuring Liabilities 357, 6.4 Asset Recognition and Measurement 366, 6.5 Specific Events and Conditions That Affect Earnings Persistence 370, 6.6 Tools in the Assessment of Accounting Quality 379, 6.7 Financial Reporting Worldwide 392) (Pages 313-389).
7	Chapter 7; Financing Activities (This chapter is focused on: 7.1 Equity Financing 428, 7.2 Net Income, Retained Earnings, Accumulated Other Comprehensive Income, and Reserves 442, 7.3 Debt Financing 446, 7.4 Leases 458, 7.5 The Use of Derivatives to Hedge Interest Rate Risk 468) (Pages 391-440).
8	Midterm
9	Chapter 8; Investing Activities (This chapter is focused on: 8.1 Investments in Long-Lived Operating Assets 498, 8.2 How Do Managers Allocate Acquisition Costs over Time? 505, 8.3 What Is the Relation between the Book Values and Market Values of Long-Lived Assets? 510, 8.4 Investments in Securities 519, 8.5 Primary Beneficiary of a Variable-Interest Entity 546, 8.6 Foreign Currency Translation 549) (Pages 441-507).
10	Chapter 9: Operating Activities (This chapter is focused on: 9.1 Revenue Recognition 578, 9.2 Expense Recognition 592, 9.3 Income Taxes 601, 9.4 Pensions and Other Postretirement Benefits 609) (Pages 509-562).
11	Chapter 10; Forecasting Financial Statements (This chapter is focused on: 10.1 Introduction to Forecasting 636, 10.2 Preparing Financial Statement Forecasts 637, 10.3 Step 1: Project Revenues 642, 10.4 Step 2: Project Operating Expenses 654, 10.5 Step 3: Project Operating Assets and Liabilities on the Balance Sheet 662, 10.6 Step 4: Project Financial Leverage, Financial Assets, Common Equity Capital, and Financial Income and Expense Items 677, 10.7 Step 5: Project Provisions for Taxes, Net Income, Dividends, Share Repurchases, and Retained Earnings 683, 10.8 Step 6: Balance the Balance Sheet 687, 10.9 Step 7: Project the Statement of Cash Flows 689, 10.10 Shortcut Approaches to Forecasting 695, 10.11 Test Forecast Validity by Analyzing Projected Financial Statements 698, 10.12 Sensitivity Analysis 699, 10.13 Reactions to Announcements 699) (Pages 563-637).
12	Chapter 11. Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach (This chapter is focused on; 11.1 The General Valuation Model 726, 11.2 Equivalence among Dividends, Cash Flows, and Earnings Valuation 728, 11.3 Expected Rates of Return 729, 11.4 Dividends-Based Valuation: Rationale and Basic Concepts 743, 11.5 Dividends-Based Valuation: Advanced Concepts 747, 11.6 The Dividends-Based Valuation Model 755, 11.7 Sensitivity Analysis and Investment Decision Making 760) (Pages 693-677).
13	Chapter 12: Valuation: Cash-Flow-Based Approaches (This chapter is focused on: 12.1 Rationale for Cash-Flow-Based Valuation 773, 12.2 Measuring Free Cash Flows 774, 12.3 Cash-Flow-Based Valuation Models 785, 12.4 Sensitivity Analysis and Investment Decision Making 798) (Pages 679-731).
14	Final Exam Review

Prerequisite(s):
Textbook(s):	Baginski, Stephen P., Bradshow, Mark T., Wahlen, James M - Financial Reporting, Financial Statement Analysis, and Valuation: A Strategic Perspective, 2023, Cengage Learning, 10th Edition.
Additional Literature:	International Financial Statement Analysis (CFA Institute Investment Series) 3rd Edition - Thomas R. Robinson, Hennie van Greuning, Elaine Henry, Michael A. Broihahn, Third Edition. 2015
Laboratory Work:	Yes
Computer Usage:	Excel
Others:	No

COURSE LEARNING OUTCOMES

1	Learning a wide variety of real financial problems
2	Analyzing financial issues facing companies
3	Making sound financial decisions based on financial statements
4	Ability to analyze data and forecast using Microsoft Excel

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Master of Science in Banking and Finance Program
1	The students gain the ability to look at the problems of daily life from a broader perspective with an increased awareness of the importance of moral/ethical considerations and professional integrity in the workplace.	5
2	They develop a broader understanding of banking and finance including concepts, theories, and analytical tools that serve both in national and international markets.	4
3	They are able to apply advanced valuation models to estimate the price of different financial assets as well as evaluate multinational business firms.	4
4	They are able to apply different investment techniques and form portfolios that would generate higher returns by decreasing the unsystematic risk level.	2
5	They have advanced knowledge of the regulatory framework and functioning of the banking system, international banking, central banking and the conduct of monetary policy.	3
6	They are able to conduct advanced financial analysis and use the results in the decision-making process of business firms.	5
7	They are able to understand and use advanced economic theories and tools to solve economic problems in banking and financial services industry.	3
8	They have the ability to utilize accounting, financial and economic data as well as other information to solve complex and unstructured business problems by using advanced econometric and statistical models.	4
9	They develop their ability to think critically, do advanced and independent research, analyze, interpret results, draw conclusions, and communicate effectively, both individually and as part of a team.	4
10	They are provided with opportunities to acquire the necessary skills and competencies to move on to further study within the discipline.	4

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	30
Case Study	1	20
Final Exam	1	40
Attendance		10
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	3	48
Hours for off-the-classroom study (Pre-study, practice)	16	2	32
Mid-terms	1	30	30
Assignments	1	27.5	27.5
Final examination	1	50	50
Other			0
Total Work Load:			187.5
Total Work Load/25(h):			7.5
ECTS Credit of the Course:			7.5

CONCLUDING REMARKS BY THE COURSE LECTURER