Strategic Financial Analysis

BUS 330

Financial Analysis is an important skill for all those in management positions who deal with financial statements as part of their understanding of a business. This includes those outside the business such as investment analysts and within the business those responsible for strategy (including execution) and those responsible for relations with outside stakeholders including investors and banks. Financial statements do not exist in a vacuum but are a reflection of business activity. To understand financial statements it is necessary to understand business activity and vice versa. The course therefore is as much about business and business strategy as it is about accounting. The ideas of the course are explored through an in depth analysis of the annual report and financial statements for a number of interesting companies. The concepts of free cash flow and residual income are central to the analysis of company performance and evaluation.