Financial Statement Analysis
Seoul, South Korea
Area of Study
Taught In English
Course Level Recommendations
ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.
Recommended U.S. Semester Credits3
Recommended U.S. Quarter Units4
Hours & Credits
One of the most important skills for business students to develop as soon as possible is the ability to properly read, analyse and interpret a Company’s Financial Statements. Why? Because before you apply to join a company, you will want to do as much research into that company as possible; Financial Statements are a great place to start your research and will tell you all you need to know and more! Then, throughout your career, no matter who you work for (perhaps for yourself at some point), the ability to analyse and interpret a set of Financial Statements is key to understanding businesses and making good business decisions. All business managers and owners need these skills and the sooner you acquire them, the sooner that you can put them to good use, perhaps in other parts of your degree course. It may be that you wish to begin investing in stocks and shares. This course will give you all the tools you need to help you predict investments that are undervalued and which may help you grow your own wealth.
Financial Statements are the most important documents produced by a company and all companies must prepare them at least annually. Companies whose shares are listed on Stock Exchanges prepare often fascinating, illuminating sets of Financial Statements because they are using the opportunity to tell their story and advertise their company to potential investors. This course teaches you how to find, properly draw out and interpret relevant information that is often hidden away in the Financial Statements.
Financial Statements provide answers to so many questions like: what does a company do? Who leads and manages it? What is its strategy? Is it large or small? Where and in what markets does it trade? Is it growing? How valuable is it? What would I have to pay for one of its shares? Should I buy some of its shares? Could it go bust? Could it be taken over? Would I like to work there? And many more questions that you could think of.
Today, Financial Statements provide much more than financial information. They also tell a story about how a company interacts with its environment and society and how well it is governed/managed.
Financial Statement Analysis is an important business tool used by all of the following:
- Investment Banks including Goldman Sachs, JP Morgan etc.
- Accounting firms including PwC, KPMG, Deloitte and EY etc.
- Consulting firms including McKinsey and Company and Booz Allen etc.
- Businesses generally for strategy development, business planning, budgeting
This course presents Financial Statement Analysis from the point of view of the primary users of Financial Statements: investors, creditors and company managers. The course provides students with important understanding and analysis tools to enable them to analyse Financial Statements and properly and accurately interpret the financial performance and value of a Company.
Students will enjoy preparing case studies in groups, role-playing as investors and advisers.
Although helpful, prior knowledge of finance and accounting is not necessary to do well on this course.
On successful completion of the course, students will have:
(a) Been introduced to investing, valuation and the importance of Financial Statements;
(b) Understood how Financial Statements are related to a company’s valuation;
(c) Learnt and practiced how to analyse Balance Sheets, Profitability and Cash Flow;
(d) Calculated and interpreted measures of a company’s internal liquidity, operating performance, risk, and growth potential;
(e) Prepared analysis tools for forecasting and valuing companies;
(f) Understood how to value a company and appreciated the principles behind investment portfolios;
(g) Appreciated why it is important to examine a company’s performance relative to its competitors, their industry and the economy; and
(h) Unravelled the secrets and techniques that successful ‘value’ investors like Warren Buffet have been applying for decades and how they might apply those secrets and techniques to their own personal investment strategy.
Successful students will also:
(a) Develop effective listening, writing, oral and presentation skills; and
(b) Have made use of time management and relevant IT skills.
Courses and course hours of instruction are subject to change.