The course in financial analysis and business diagnosis sets itself two primary objectives: raising students’ awareness of the main financial constraints (solvency and risk management, performance etc.) and their implications for the development of businesses and their main functions; teaching them the main practical methods of financial diagnosis in preparation for conducting statistical or monographic studies or for taking up concrete roles in financial management.
- Analysis objectives –Taking account of financial constraints. Evaluating financial risk. Evaluating financial performance. Financial analysis and business evaluation.
- Professional applications of financial analysis –Applications inside and outside the company. Operational applications. Applications linked to economic and financial studies.
- Fundamental approaches to analysis
- An asset-based approach –Analysis of the balance sheet and asset structure. Evaluating working capital. The information provided by the cash relationship. Using the ratios method.
- An approach in terms of cash flows –Reconstituting cash flows. Studying the sources and uses of funds statement. Extending the analysis of cash flows.
- Critical analysis of performance indicators –The problems raised by the traditional accounting indicators. Comparing accounting, economic and financial performance indicators.
- Evaluating performance –The information provided by the profitability ratios. Financial performance and financing structure. Problems posed by the volatility of the results.
- Financial analysis and strategic diagnosis –Strategic analysis, internal and external diagnosis. Financial analysis and evaluation of the strengths and weaknesses of the business. Evaluating the range of activities.
- From financial analysis to management planning –Analysis and financial plans, analysis and budgets.
- Financial analysis and business evaluation –The evaluation process. Stock exchange analysis. The case of restructuring operations: LMBO, mergers and acquisitions.
VERNIMMEN P., QUIRY P., LE FUR Y. et CEDAHA F. (2002) : Finance d’entreprise, Dalloz.