COURSE INFORMATION Course Title: FINANCIAL ANALYSIS

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 415	B	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. Albina Hysaj ahysaj@epoka.edu.al
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Dr. Albina Hysaj ahysaj@epoka.edu.al , Tuesday 14:00-16:00
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	M.Sc. Kriselda Gura ksulcaj@epoka.edu.al
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:	E313 - Wednesday 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:	60 %
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 tools for solving complicated and concrete financial problems. These skills include choosing between alternative investments, selecting the optimal portfolio, measuring risk, price forecasting and option valuation.

BASIC CONCEPTS OF THE COURSE

1	Financial Statement Analysis
2	Accruals and Valuation Adjustments
3	Expenses and Revenue Recognition
4	Financial Analysis Techniques
5	Profitability Analysis
6	Risk Management
7	Forecasting Financial Statements

COURSE OUTLINE

Week	Topics
1	Review of Syllabus: Introduction to the Course (This is an introductory lecture presenting students with the general rules, valuation methods, specific requirements, textbook, and other learning materials, and the main chapters to be taught in this course).
2	Chapter 1. Financial Statement Analysis: An Introduction (This chapter is focused on: 1. Introduction 1, 2. Scope of Financial Statement Analysis 2, 3. Major Financial Statements and Other Information Sources 7, 4. Financial Statement Analysis Framework 28).
3	Chapter 2. Financial Reporting Mechanics (This chapter is focused on: 1. Introduction 38, 2. The Classification of Business Activities 38, 3. Accounts and Financial Statements 39, 4. The Accounting Process 47, 5. Accruals and Valuation Adjustments 65, 6. Accounting Systems 67, 7. Using Financial Statements in Security Analysis 69).
4	Chapter 3. Understanding Income Statements (This chapter is focused on: 1. Introduction 134, 2. Components and Format of the Income Statement 135, 3. Revenue Recognition 139, 4. Expense Recognition 152, 5. Non-Recurring Items and Non-Operating Items 162, 6. Earnings per Share 169, 7. Analysis of the Income Statement 178, 8. Comprehensive Income 183).
5	Chapter 4. Understanding Balance Sheet (This chapter is focused on: 1. Introduction 193, 2. Components and Format of the Balance Sheet 194, 3. Current Assets and Current Liabilities 199, 4. Non-Current Assets 209, 5. Non-Current Liabilities 220, 6. Equity 223, 7. Analysis of the Balance Sheet 227).
6	Chapter 5. Understanding cash flow statement (This chapter is focused on: 1. Introduction 243, 2. Components and Format of the Cash Flow Statement 244, 3. The Cash Flow Statement: Linkages and Preparation 258, 4. Cash Flow Statement Analysis 273).
7	Review for Midterm
8	Midterm
9	Chapter 6. Financial Analysis Techniques (This chapter is focused on: 1. Introduction 291, 2. The Financial Analysis Process 292, 3. Analytical Tools and Techniques 296, 4. Common Ratios Used in Financial Analysis 313, 5. Equity Analysis 341, 6. Credit Analysis 347, 7. Business and Geographic Segments 350, 8. Model Building and Forecasting 353).
10	Chapter 7. Profitability Analysis (This chapter is focused on: 1 Overview of Profitability Analysis Based on Various Measures of Income 190, 2 Return on Assets (ROA) 201, 3 Return on Common Shareholders’ Equity (ROCE) 207, 4. Economic and Strategic Determinants of ROA and ROCE 215, 5 Benefits and Limitations of Using Financial Statement Ratios 240).
11	Chapter 8. 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).
12	Chapter 9. Forecasting Financial Statements (This chapter is focused on: 1 Introduction to Forecasting 636, 2. Preparing Financial Statement Forecasts 637, 3. Step 1: Project Revenues 642, Step 2: Project Operating Expenses 654, Step 3: Project Operating Assets and Liabilities on the Balance Sheet 662, Step 4: Project Financial Leverage, Financial Assets, Common Equity Capital, and Financial Income and Expense Items 677, Step 5: Project Provisions for Taxes, Net Income, Dividends, Share Repurchases, and Retained Earnings 683, Step 6: Balance the Balance Sheet 687, Step 7: Project the Statement of Cash Flows 689, 4. Shortcut Approaches to Forecasting 695, 5. Test Forecast Validity by Analyzing Projected Financial Statements 698, 6. Sensitivity Analysis 699, 7. Reactions to Announcements 699).
13	Financial Statement Analysis: Application – Assignments Presentation
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, 2018, Cengage Learning, 9th 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 problems
3	Making sound financial decisions
4	Working knowledge of 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	3	48
Mid-terms	1	41.5	41.5
Assignments			0
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

no