Course aims:

Knowledge and thorough research by learners of the diagnostic analysis of performance and risks based on the result account
the diagnostic analysis of the financial situation based on the balance sheet; financial analysis through flows of funds.
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Course Entry Requirements:

N/A

Course contents:

1. The theoretical basis of financial performance analysis. Necessity and users of financial performance analysis. Data and information sources of financial performance analysis. The methodology of financial performance analysis.
2. Diagnostic analysis of performance and risks based on the resulting account. Profitability – performance criterion reflected in the profit and loss account. Analysis of the Management Intermediate Balances Table. Analysis of expenditure on revenue. Analysis of profitability margins.
3. Diagnostic analysis of performance and risks based on the resulting account. Analysis of operating income. Analysis of rates of return. The break-even point and risk assessment.
4. Diagnostic analysis of the financial situation based on the balance sheet. Balance sheet study - stage of financial performance analysis. Analysis of financial balances.  Analysis of the balance sheet by the rate method (ratios)
5. Diagnostic analysis of the financial situation based on the balance sheet.  Solvency and liquidity analysis. Analysis of bankruptcy risk (insolvency). Indicators are specific to stock market analysis.
6. Financial analysis through flows of funds. Flows of funds in the enterprise. Analysis of the financing table and cash flows. Cash Flow Analysis
7. Financial analysis through flows of funds.  Functional analysis relationship – flow analysis. Analysis of growth and profitability through flows

Teaching methods:

Lecture, exposure, discussion, examples (e.g. various information materials, online publications, specialised web pages, and other)

Learning outcomes:

Developing the necessary knowledge of the financial performance of an entity, i.e. carrying out diagnostic analyses of the financial situation of the company.

Learning outcomes verification and assessment criteria:

Written exam -grid test 60%, Practical work 40%

Recommended reading:

Burja, C., Economic Analysis, Evaluation and feasibility studies - course support Series, Didactica, Alba Iulia, 2013, -.
Amenc. N., Le Sourd, V., Portfolio Theory and Performance Analysis, John Wiley & Sons Ltd,, The Atrium, Chichester, 2003, -.
Bertoneche, M. and Knight, R, Financial Performance, Linacre House, Oxford, 2001, -.