BUSN 670 Advanced Financial Analysis

This graduate-level course offers an in-depth examination of advanced financial analysis techniques and methodologies used in evaluating the financial performance, health, and strategic decisions of organizations. Building upon foundational concepts in finance, students will delve into complex financial models, quantitative techniques, and analytical tools to assess investment opportunities, analyze corporate financial statements, and make informed financial decisions. Through a combination of theoretical discussions, hands-on exercises, case studies, and real-world applications, learners will develop the skills and knowledge necessary to excel in financial analysis roles in diverse industries.

Credits

3

Offered

Fall

Outcomes

1. Advanced financial statement analysis: Students will develop advanced skills in analyzing financial statements. They will learn techniques to assess the quality of financial reporting, identify potential red flags, and interpret complex financial statement items such as leases, pensions, and derivatives. They will be able to analyze financial statements in different industries and evaluate a company's financial performance and position.
2. Financial ratio analysis: Students will gain proficiency in using financial ratios to analyze and evaluate a company's financial health and performance. They will learn how to interpret and compare ratios across companies and industries to assess profitability, liquidity, solvency, efficiency, and market valuation. They will understand the limitations and caveats of ratio analysis.
3. Cash flow analysis: Students will learn advanced techniques for analyzing cash flows and cash flow statements. They will explore cash flow forecasting, free cash flow analysis, and cash flow-based valuation models. They will understand the importance of cash flow management and the implications of cash flow patterns on a company's financial health.
4. Business valuation: Students will learn advanced methods for valuing businesses and securities. They will explore discounted cash flow (DCF) analysis, relative valuation techniques (comparables), and option pricing models. They will gain proficiency in estimating the intrinsic value of a company or its securities, considering factors such as growth prospects, risk, and market conditions.
5. Financial modeling: Students will develop skills in constructing and using financial models to analyze and forecast financial performance. They will learn spreadsheet modeling techniques and best practices for building comprehensive financial models that incorporate income statements, balance sheets, cash flow statements, and key financial ratios. They will be able to perform sensitivity and scenario analyses to evaluate the impact of different assumptions on financial outcomes.
6. Risk assessment and management: Students will gain an understanding of the role of risk in financial analysis and decision-making. They will learn techniques to assess and quantify risks, such as sensitivity analysis, scenario analysis, and Monte Carlo simulation. They will explore strategies to manage and mitigate risks, including diversification, hedging, and risk-adjusted performance measures.
7. Capital structure analysis: Students will study the impact of capital structure decisions on a company's financial performance and value. They will learn to analyze the cost of capital, capital structure ratios, and the trade-offs between debt and equity financing. They will explore optimal capital structure theories and factors influencing capital structure decisions.
8. Financial distress and restructuring Analysis: Students will gain knowledge about the signs of financial distress and the analysis of troubled companies. They will learn to evaluate restructuring options and financial recovery strategies. They will understand the implications of bankruptcy, debt restructuring, and mergers and acquisitions in the context of financially distressed firms.
9. International financial analysis: Students will explore the challenges and considerations in analyzing multinational companies and global financial markets. They will learn techniques for analyzing foreign exchange risk, international financial reporting standards, and the impact of global economic factors on financial analysis.