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
Demonstration of the syllabus coherence with the curricular unit's learning objectives
The first objective (to equip students with technical and relational skills at the level of global management) is addressed in chapter 1 of the program, where the general concepts of function, analysis and financial management are studied.
The second objective related to "specific management" is related to chapter 2 and the basic tools of the financial analysis are addressed.
The third objective of equipping students with technical skills in the interpretation and analysis of financial statement maps is addressed in the remaining chapters by studying a set of financial analysis methods and techniques, the company's financial equilibrium, financial and risk factors and, finally, the economic-financial diagnosis.
Main literature
Silva, E;Gestão Financeira-Análise de Fluxos Financeiros, Vida Económica, 2011. ISBN: 9789727884186
Fernandes, C., Neiva, J., Vieira, E., Peguinho, C;Análise Financeira -Teoria e Prática,, Edições Sílabo, 2016. ISBN: 9789726188421
Supplementary Bibliography
Breia, A., Pereira, V., Mata, M.;Análise Económica e Financeira - Aspetos Teóricos e Casos Práticos, Rei dos Livros, 2014. ISBN: 9789898305619
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
Assessment Components
Description
Type
Time (hours)
Conclusion Date
Attendance (estimated)
Lessons
45
Teste/Exame
4
Study
96
Trabalho laboratorial ou de campo
15
Total:
160
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 scheduled for each course unit, the student will be automatically transferred to the final evaluation (regular season).
2. In the written tests and other assessment elements mentioned in paragraph 2 of Art. 39 it is necessary to obtain a minimum grade of 7.5 (seven point five) points.
3. If the student misses a test or receives a grade lower than 7.5 points in the tests or in another assessment element mentioned in the previous number, the student will be automatically transferred to the final evaluation (regular season).
4. If the student misses or obtains less than 7.5 in the second written test, held in the same date of the final exam in the regular season, they may apply for further evaluation in the Appeal season
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.
Demonstration of the coherence between the teaching methodologies and the learning outcomes
The first objective presupposes the use of the Microsoft Powerpoint program to present theoretical contents. The 2nd and 3rd objective combines the theoretical slide presentation from the same software, with exercises in the classroom, through work sheets made available to students, the accomplishment of a computer lab activity to access statistical and market data and the analysis of working documents.