Accounting and financial analysis


Objective

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.

Planning

  1. Analysis objectives –Taking account of financial constraints. Evaluating financial risk. Evaluating financial performance. Financial analysis and business evaluation.
  2. Professional applications of financial analysis –Applications inside and outside the company. Operational applications. Applications linked to economic and financial studies.
  3. Fundamental approaches to analysis
  4. 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.
  5. An approach in terms of cash flows –Reconstituting cash flows. Studying the sources and uses of funds statement. Extending the analysis of cash flows.
  6. Critical analysis of performance indicators –The problems raised by the traditional accounting indicators. Comparing accounting, economic and financial performance indicators.
  7. Evaluating performance –The information provided by the profitability ratios. Financial performance and financing structure. Problems posed by the volatility of the results.
  8. 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.
  9. From financial analysis to management planning –Analysis and financial plans, analysis and budgets.
  10. Financial analysis and business evaluation –The evaluation process. Stock exchange analysis. The case of restructuring operations: LMBO, mergers and acquisitions.

Références

VERNIMMEN P., QUIRY P., LE FUR Y. et CEDAHA F. (2002) : Finance d’entreprise,  Dalloz.