Financial and Economic Analysis

  • Credits: 6
  • Ending: Examination
  • Range: 20sP
  • Semester: winter
  • Year: 3
  • Faculty of Business Economics with seat in Košice

Teachers

Included in study programs

Business Economics and Management

Teaching results

The aim of the course is to provide students with a comprehensive concept of financial and economic analysis enterprise, integrate methods, techniques and model tools of economic analysis with a comprehensive and factual content of managerial decision-making problems.

Knowledge:

After completing the course, the student knows what is financial analysis, its position, the correct procedure, what are the methods, who are the users, what are the internal and external sources of information for its successful implementation.

Competences:

The student acquires the following competencies:

Search for internal and external sources of information
Use information
Select the appropriate method of analysis
Analyze data and indicators
Critically evaluate the financial position of the company

Skills:

Within the course, students will also gain practical skills in using selected methods and models of financial and economic analysis and can apply them in real conditions of a business entity. Based on the results of the analysis, they can formulate a proposal for measures to improve the financial situation.

Indicative content

Consultation:
The position and role of financial and economic analysis in the management and decision-making of the company. Analysis of the financial situation of the company. Information sources and users. Basic financial statements. Financial analysis procedure. Analysis of relationships between indicators. Methods of forecasting the financial situation of the company. Bankruptcy and creditworthiness models. Analysis of quantitative results of the company. Analysis of qualitative results of the company. Product analysis. Cost calculation, cost structure. Analysis of the financial and economic position of the company in space. Analysis of the influence of production factors in the company: human labor, work equipment and work items. Analysis of company costs. Breakdown of costs. Cost-effectiveness analysis. Pyramid analysis of the cost indicator of economic activity. Analytical models respecting fixed and variable costs. Analysis of financial performance of the company. Traditional indicators of measuring financial performance (ROA, ROI, ROE). Modern indicators of financial performance of the company (EVA, RONA, CF ROI). Relationships between EVA and ROE models.

Self-study:
Status of financial and economic analysis (FEA). FEA users. Sources of information for the FEA. FEA methods. Factor exchange methods, chain substitution methods.
Methods of chain substitution, logarithmic and functional method in multiplicative bonds. Analysis of quantitative results of the company. Traditional revenue analysis. Market-oriented revenue analysis. Preparation for written examination 1. Analysis of qualitative results of the company. Traditional models of analysis of profit from realization. Analysis of contributory profit. Zero-point analysis. Product analysis. Methods of company position in the market. Short-term product analysis. Preparation for written examination 2.

Support literature

Elementary literature:
1. ZALAI, K. a kol.: Finančno-ekonomická analýza podniku. 9. vyd. Bratislava: Sprint, 2016.
ISBN 80-890-8599-6
2. TÓTHOVÁ, A. a kol.: Finančno-ekonomická analýza podniku – praktikum. Bratislava:
Sprint, 2012. ISBN 978-80-89710-01-0.
3. VARCHOLOVÁ, T. a kol.: Meranie výkonnosti podniku. Bratislava: EKONÓM, 2007.
ISBN 978-80-225-2421-6.
4. KNÁPKOVÁ, A. a kol.: Finančná analýza – Komplexní průvodce s příklady. 2 vyd. Praha:
GRADA, 2012, 2. ISBN 978-80-247-4456-8.
5. SYNEK, M. a kol.: Manažérske výpočty a ekonomická analýza. Praha: C. H. Beck, 2009.
ISBN 978-80-7400-154-3.
Supplementary literature:
1. BRAGG M.Steven, Financial analysis, New York: John Wiley and Sons, 2006- 416s
ISBN: 0470055189
2. Finance for Managers (Harvard Business Essentials), Harvard Business School Press, 2003,
256p, ISBN: 978-1578518760
3. COKINS,G. Activity-based Cost Management: An Executive’s Guide. New York: John
Wiley&Sons, 2001. 374s. ISBN 0-471-44328-X.

Syllabus

Consultation: The position and role of financial and economic analysis in the management and decision-making of the company. Analysis of the financial situation of the company. Information sources and users. Basic financial statements. Financial analysis procedure. Analysis of relationships between indicators. Methods of forecasting the financial situation of the company. Bankruptcy and creditworthiness models. Analysis of quantitative results of the company. Analysis of qualitative results of the company. Product analysis. Cost calculation, cost structure. Analysis of the financial and economic position of the company in space. Analysis of the influence of production factors in the company: human labor, work equipment and work items. Analysis of company costs. Breakdown of costs. Cost-effectiveness analysis. Pyramid analysis of the cost indicator of economic activity. Analytical models respecting fixed and variable costs. Analysis of financial performance of the company. Traditional indicators of measuring financial performance (ROA, ROI, ROE). Modern indicators of financial performance of the company (EVA, RONA, CF ROI). Relationships between EVA and ROE models. Self-study: Status of financial and economic analysis (FEA). FEA users. Sources of information for the FEA. FEA methods. Factor exchange methods, chain substitution methods. Methods of chain substitution, logarithmic and functional method in multiplicative bonds. Analysis of quantitative results of the company. Traditional revenue analysis. Market-oriented revenue analysis. Preparation for written examination 1. Analysis of qualitative results of the company. Traditional models of analysis of profit from realization. Analysis of contributory profit. Zero-point analysis. Product analysis. Methods of company position in the market. Short-term product analysis. Preparation for written examination 2.

Requirements to complete the course

written examination of 40%
21% is required to award an interim evaluation
Final exam: written examination of 60%
At least 31% is required for successful completion

Student workload

156 hours in total, of which:
20 hours of participation in consultation
26 hours of preparation for consultation
32 hours self-study
26 hours preparation for continuous assessments
52 hours preparation for final assessment

Language whose command is required to complete the course

slovak

Date of approval: 11.03.2024

Date of the latest change: 24.01.2022