Economic and Financial Analysis

Code:

LRE2332

Acronym:

AEFI

Subject: 2020/2021 - 1S

Teaching Area:

Management

Programmes

Acronym	Study plan	Curriculum Years	ECTS	Contact hours	Total Hours
LRE	Aviso nº 9881/2017	3º	6 ECTS	60	160

Hours Effectively Taught

LRE3

Theoretical-Practical:	45,00
Other:	15,00

Teaching - Hours Theoretical-Practical: 3,00 Other: 1,00

Aims, Skills and Learning Outcomes

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

1.1. 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 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, 5ª Edição, Vida Económica, 2013. ISBN: 9789727884186

Fernandes, C., Vieira, E., Neiva, J., Peguinho, C. ;Análise Financeira Teoria e Prática 5ª Edição, Silabo, 2019. ISBN: 9789895610020

Supplementary Bibliography

Fernandes, C., Peguinho, C., Vieira, E., Neiva, J. ;Análise Financeira ¿ Casos Práticos, 2ª Edição, Silabo, 2018. ISBN: 9789726189435

Learning Methods

Assessment Components

Avaliação distribuída com exame final

Assessment Components

Description	Type	Time (hours)	Conclusion Date
Attendance (estimated)	Lessons	45
	Participação Presencial	15
	Study	82
	Teste/Exame	2
	Projectos	16
	Total:	160

Continuous Assessment

1. Written individual assignment with a weight of 20% in the final grade (10% + 10%).

2. Written tests with a weight of 80% (40% per test) in the final grade.


Under the terms of the Bachelor's Regulation:

a) The effective attendance of students in class will be recorded and, if the number of absences per student exceeds 30% of the total number of contact sessions for each course unit, will be automatically transferred to the final evaluation of the normal season;

b) In the written tests and in the defined evaluation elements it is necessary to obtain a minimum grade of 7.5 points;

c) If the student misses or achieves a grade lower than 7.5 points in the tests or evaluation elements referred to in the previous number, he / she will be automatically transferred to the final evaluation of the normal season;

d) If the student misses or achieves a grade lower than 7.5 points in the second written test (held on the same date as the final written test of the normal season), he / she may require registration for evaluation at the time of appeal;

e) All written academic work provided for in the assessment (reports, case studies, etc.) must be submitted to the Turnitin database, available on the ISAG E-Learning platform, with a similarity rate up to 30% acceptable.

Final Exam

100% Final Exam.

Demonstration of the coherence between the teaching methodologies and the learning outcomes