Presentation

A company's financial statements are the starting point for assessing financial performance and associated risks. The objective of this class is to develop the students’  ability to decipher this complex set of financial documents and identify the critical information they contain. Financial analysis consists of reviewing and analyzing this information. The class, therefore, introduces students to the language and terminology specific to finance, provides a framework for analyzing consolidated accounts (income statement, balance sheet, and cash flow statement) and an analytical methodology for assessing the financial health and risks of the company.

Recommended Prerequisite(s)

Command of basic accounting processes; keeping up to date with economic and financial news by reading the specialized press.

Bibliography

• Vernimmen P., Quiry P., Le Fur Y., Finance d’entreprise, Dalloz, 2002.

Educational formula

The class alternates between presenting and explaining the tools and applying them to a real case. Students then place themselves in the role of financial analysts, select a company according to the Master's course they are attending and to their professional objectives, and then apply the concepts and methods to this company. Student assessment is based on an oral presentation and a complete analysis report.