Course Detail

Financial Statement Analysis (30130)

Course Description by Faculty

  • Minnis, Michael
  • Content
    For winter quarter, this course will be offered in-person for the full-time (Harper) sections and dual modality for the evening (Gleacher) section.

    This course teaches you how to analyze financial statements in order to develop financial statement models, assess credit risk, and, ultimately, value a company. The course provides both a framework and the tools necessary to analyze financial statements. Its primary objective is to advance your understanding of how financial reporting can be used in a variety of decisions (e.g., lending and investment decisions) and analyses (e.g., financial distress and bankruptcy prediction). It is applied in nature and stresses the use of actual financial statements. Throughout the course, I draw heavily on real business examples and use cases to illustrate the application of the techniques and tools. Topics include traditional ratio analysis techniques, accounting analysis (i.e., identifying earnings management and accounting quality issues), and financial risk assessment. The second part of the course focuses on equity valuation, e.g., the preparation of pro forma financial statements, and the use of various valuation models. While students with a multitude of interests will benefit from this course, students with an interest in investment banking, equity or credit analysis, consulting, strategy, corporate finance, or management will find this course particularly relevant.
    Format
    • Lectures

    • Discussion

    • Case Studies

    • Group Projects

    • Group Presentations

  • Prerequisites
    Business 30000 (or 30116) and Business 35000 (or 35001) are strongly recommended and ideally should be taken prior to taking my class. In essence, I expect students to have a solid foundation in financial accounting and an understanding of investments (including the CAPM) as provided by Business 30000 and 35000, respectively. Business 35200 is also strongly recommended but can be taken concurrently. If you decide to take this class without these prerequisites, you will have to work much harder and may be at a disadvantage. Cannot enroll in BUSN 30130 if BUSN 20150 taken previously.
  • Materials
    The textbook should be purchased prior to the first week of class. All other materials (including reading assignments for the first class) will be posted to Canvas.
    Resources
    • Canvas Site Available

  • Grades
    Based on individual and group assignments, class participation, a group valuation project, a quiz, and a final exam. Cannot be taken pass/fail. No registered auditors.
    Grades
    • Graded homework assignments

    • Graded attendance/participation

    • Mandatory attendance week 1

    Assessment & Testing
    • Quizzes

    • Final exam (in class)

    • Final Presentation

    • Final Project

    Restrictions
    • No auditors

    • No pass/fail grades

  • Syllabus
  • Winter 2022Section: 30130-01TTH 8:30AM-9:50AMHarper CenterC04In-Person Only
  • Winter 2022Section: 30130-02TTH 10:10AM-11:30AMHarper CenterC04In-Person Only
  • Winter 2022Section: 30130-81TH 6:00PM-9:00PMGleacher Center400Dual Modality
    Faculty In-Person
Description and/or course criteria last updated: November 11 2021