To provide theoretical concepts and practical tools for the analysis and evaluation of financial performance and risk of non-financial companies, industries and portfolios. In details, the course aims at developing competences and skills in critical analysis, interpretation and valuation-judgement in the following fields:
economic and financial performance of firms/industries in manufacturing and tertiary sector
financial dynamics and financial needs of non-financial firms
financial solvency, credit risk and cost of debt
risk and return of equity portfolios and mutual funds.
The course contents are applicable in two main areas:
decision making for resources allocation by managers, public decision-makers and financial analysts
fundamental analysis of shares/portfolios for asset management/financial investments.
economic and financial performance of firms/industries in manufacturing and tertiary sector
financial dynamics and financial needs of non-financial firms
financial solvency, credit risk and cost of debt
risk and return of equity portfolios and mutual funds.
The course contents are applicable in two main areas:
decision making for resources allocation by managers, public decision-makers and financial analysts
fundamental analysis of shares/portfolios for asset management/financial investments.
scheda docente
materiale didattico
1. Objectives, content, applications, and users of financial statement analysis
2. Elements of strategic analysis: competitive forces analysis as the foundation of financial statement analysis
3. Standardization, reclassification, and adjustments of financial statements and accounting data
4. Performance analysis of industrial, commercial, and service firms:
a. Financial ratios:
i. categories and measurement criteria
ii. informational and diagnostic content
iii. logical/analytical models for decomposition and linkage
iv. benchmarks for cross-sectional analysis
v. practical implementation issues
vi. sector/firm analysis and comparison using real-world data
b. Cash flow analysis and preparation of the cash flow statement
5. Forecasting: structure, logic, and stages of financial forecasting analysis. Preparation of pro forma financial statements
6. Financial statement analysis for business valuation: DCF, DDM, abnormal profit, abnormal profit growth, and multiples. Differences between asset-side and equity-side approaches
7. Working capital management: (a) trade receivables/payables management; (b) inventory management models; (c) cash management models
8. Financial solvency and cost of debt:
a. fixed-income securities: fundamentals, pricing, and duration
b. measures and concepts of financial solvency
c. corporate bond ratings: key determinants
d. bankruptcy prediction and corporate fundamentals
9. Financial analysis in the asset management industry
10. Return and risk of equity portfolios/mutual funds:
a. portfolio return (TWR and MWR) and risk measures
b. risk-adjusted performance measures
c. style analysis and performance attribution
2) Benninga, S., Mofkadi, T., 2021 (5° edizione), Financial modeling (uses Excel and R), MIT Press, exercises and spreadsheets delivered in class
3) Basile, I., Ferrari, P., Braga, M.D., 2024 (3° edizione). Asset management e investitori istituzionali. Chapters 8-9-10.
Programma
The main topics covered in the course are:1. Objectives, content, applications, and users of financial statement analysis
2. Elements of strategic analysis: competitive forces analysis as the foundation of financial statement analysis
3. Standardization, reclassification, and adjustments of financial statements and accounting data
4. Performance analysis of industrial, commercial, and service firms:
a. Financial ratios:
i. categories and measurement criteria
ii. informational and diagnostic content
iii. logical/analytical models for decomposition and linkage
iv. benchmarks for cross-sectional analysis
v. practical implementation issues
vi. sector/firm analysis and comparison using real-world data
b. Cash flow analysis and preparation of the cash flow statement
5. Forecasting: structure, logic, and stages of financial forecasting analysis. Preparation of pro forma financial statements
6. Financial statement analysis for business valuation: DCF, DDM, abnormal profit, abnormal profit growth, and multiples. Differences between asset-side and equity-side approaches
7. Working capital management: (a) trade receivables/payables management; (b) inventory management models; (c) cash management models
8. Financial solvency and cost of debt:
a. fixed-income securities: fundamentals, pricing, and duration
b. measures and concepts of financial solvency
c. corporate bond ratings: key determinants
d. bankruptcy prediction and corporate fundamentals
9. Financial analysis in the asset management industry
10. Return and risk of equity portfolios/mutual funds:
a. portfolio return (TWR and MWR) and risk measures
b. risk-adjusted performance measures
c. style analysis and performance attribution
Testi Adottati
1) Palepu, K.G., Healy, P.M., Peek, E., 2025 (7° edizione). Business analysis and valuation: An international perspective, Cengage. Chapters 1-8; section 9.5; chapter 102) Benninga, S., Mofkadi, T., 2021 (5° edizione), Financial modeling (uses Excel and R), MIT Press, exercises and spreadsheets delivered in class
3) Basile, I., Ferrari, P., Braga, M.D., 2024 (3° edizione). Asset management e investitori istituzionali. Chapters 8-9-10.
Modalità Frequenza
Attendace is strongly recommended because of the use of Excel and practical exercisesModalità Valutazione
Knowledge is assessed through written exam composed of open-ended questions, true/false, exercises.