This course examines the role of financial statement analysis in the evaluation of the firm and the prediction of its future condition. The course provides a framework and tools for analyzing financial statements in a variety of contexts (e.g. analysis of financial distress and bankruptcy risk, equity valuation and identification and evaluation of value creation opportunities.) We emphasize the connection between executives’ priorities, corporate strategy and industry dynamics, and financial statement information. We illustrate the use of financial statement information in ratio analysis, statistical prediction models, pro-forma financial statements, and equity valuation. Students interested in management, corporate finance, strategy consulting, investment banking, private equity, and equity or credit analysis will find this course most relevant.

Business 30000 (or 30116) and Business 35000 (or 35001) are strongly recommended prior to taking this class to provide a foundation in financial accounting and the Capital Asset Pricing Model. Cannot enroll in BUSN 30130 if BUSN 20150 taken previously.

There will be a textbook to be rented (recommend renting the e-Book providing access to a digital version) or purchased prior to the first week of class. The syllabus for Autumn 2022 will provide a link to rent the e-Book. All other materials will be posted on Canvas.

Grades are based on weekly team or individual case assignments, weekly multiple choice questions, a final team valuation project, class participation, and a remote-only open-book, open-notes quiz and final exam. One team from each section will be selected to lead the final project discussion in week 9's class. Cannot be taken pass/fail. No auditors. No early final grades.