This course unit provides tools of economic, financial reading, activity and evaluation, supported in accounting parts produced by the company, involved in a pedagogical approach of a case study.
OBJECTIVES AND EXPECTED LEARNING OUTCOMES
Provide the students with technical and relational skills in terms of:
- Overall management (taking into account the context in which the company moves);
- Specific management, in terms of its economic and financial framework;
- Interpretation and analysis of financial statements.
SKILLS TO BE DEVELOPED
It is intended that students at the end of the semester are presented skilled in the use of Economic and Financial Analysis Tools and Business Diagnosis, particularly in:
- Analysis of the companies in order to develop their economic and financial diagnosis;
- Development of global action plans;
- Development of a management policy of operating, financing and investment cycles.
Programme
1. Financial Analysis 1.1. Framework 1.2. Financial function 1.3. Financial analysis 1.4. Financial management 1.5. Main tasks of the financial manager
2. Financial Analysis Basis Instruments 2.1. Main tools of financial analysis 2.2. Balance 2.2.1. Accounting balance 2.2.2. Functional balance 2.2.3. Financial cycles 2.2.4. Adjustments of the Accounting balance for Functional balance 2.3. Income Statement 2.4. Accounting Statement of Cash Flows
3. Methods and techniques of financial analysis 3.1. Traditional Approach 3.2. Advanced approach 3.3. Financial Statement Analysis techniques - Ratios 3.4. The ratios and benchmarking 3.5. The reference ratios
4. Financial Equilibrium 4.1. Financial Statement Analysis 4.2. Traditional Analysis - Working Capital 4.3. Functional Analysis (Advanced) 4.3.1. Functional Working Capital 4.3.2. Working Capital Needs 4.3.3. Net cash 4.3.4.Working Capital Needs and Operating Cycle 4.4. Analysis "refined" 4.4.1. Financial Typical strategies
5. Ratios of Economic and Financial Analysis 5.1. Definition, objectives, and purpose of the ratios 5.2. Advantages and limitations of ratios 5.3. Ratio Types 5.4. Liquidity Ratios 5.5. Cash Margin of Safety 5.6. Financial Structure Ratios 5.7. Financing Ratios 5.8. Economic Indicators and Profitability Ratios
6. Market Ratios and Risk Ratios 6.1. Enterprise Risk 6.1.1. Risk types in the company 6.1.2. Risk measurement instruments 6.1.3. Break-even point 6.1.4. Operating margin of safety 6.1.5. Operating leverage effect 6.1.6. Financial leverage effect 6.1.7. Global risk and degree of combined leverage 6.2. Market Ratios 6.3. Z-Score Concept
7. Economic and Financial Diagnosis 7.1. Preparation of economic and financial diagnostic of companies of different economic sectors
Main literature
Neves, J. C.;Análise e Relato Financeiro - Uma visão integrada de gestão, 5ª Edição, Texto Editores, 2012. ISBN: 9789724743264
Supplementary Bibliography
Saias, L., Carvalho, R. e Amaral, M. C.;Instrumentos Fundamentais de Gestão Financeira, Universidade Católica Editora, 2006. ISBN: 9789725401538
Learning Methods
Combinations of several strategies are used aiming to encourage the student to develop individual and group autonomous work, accompanied by the lecturer, in order to build up specific and generic skills that are considered crucial to its training.
Assessment Components
Avaliação distribuída com exame final
Continuous Assessment
1. Written individual assignment with a weight of 20% in the final grade.
2. Written tests with a weight of 80% (40% per test) in the final grade.
Under the terms of the Bachelor's Regulation:
1. The students' attendance in classes will be recorded and, if the number of absences per student exceeds 30% of the total number of lessons predicted for each course unit, the student will be automatically transferred to the final evaluation ("época normal").
2. In the written tests and other assessment elements referred to in points b) to e) of paragraph 2 of Art. 39 it is necessary to obtain a minimum grade of 7.5 (seven dot five) points.
3. If the student fails a test or receives a grade lower than 7.5 points in the tests or in another assessment element referred to in the previous number, the student will be automatically transferred to the final evaluation ("época normal").
4. If the student misses or fails to obtain a grade of at least 7.5 points in the second written test (held on the same date as the final written test of "época normal"), the student may apply for evaluation at "época de recurso".
Final Exam
Written exam. And under the terms of Art. 41 of the Bachelor's Regulation:
- The practical or theoretical-practical work(s) referred to in point b) of paragraph 2 of Art. 39 may also be considered, with a weighting corresponding to half of that considered in the continuous assessment, if the student communicates such intention to the professor, filling, in that case, a specific form to be made available by the professor at the moment of the written exam.
Improvement of final grade
The exam will correspond to 100% of the final grade.