Course detail

Financial Analysis in Construction Company

FAST-CV60Acad. year: 2013/2014

Financial analysis, users of financial analysis, data for financial analysis, sense of financial analysis. Index types - difference indexes, ratio indexes. Indexes of structure of capital, personal capital quota, capital structure, solidity of I., II., and III. degree. Profitability indexes, ROE, ROA, analyses of profitability indexes. Financial lever, risks. Cash - flow in financial analysis. Total indexes, Quick – test. DuPont’s pyramid, Altmann’s index of financial health. Structural financial analysis.

Language of instruction

Czech

Number of ECTS credits

8

Mode of study

Not applicable.

Guarantor

doc. Ing. Jiří Blažek, CSc.

Department

Institute of Structural Economics and Management (EKR)

Learning outcomes of the course unit

Students will deepen their knowledge of the property and resource coverage.
Students will deepen their knowledge of financial statements.
Students will get knowledge of elementary methods of financial analysis.
Students will get knowledge of ratio indexes.
Students will get knowledge of aggregate indexes.

Prerequisites

Knowledge of Accounting, knowledge and orientation in prescribed accounting statements.

Co-requisites

Financial accounting, cost and tax accounting, finances in the construction company.

Planned learning activities and teaching methods

The course is taught through lectures, practical classes and self-study assignments. Attendance at lectures is optional, but attendance at classes is compulsory.

Assesment methods and criteria linked to learning outcomes

For credit student must meet attendance and successfully complete a credit test. The exam consists of written oral part. In the frame of written part student will answer defined questions, to pass this part student must reach min. 50 % of points. Oral part serves for specification of classification.

Course curriculum

1. Basic areas of financial analysis, its sense, sorts of indexes. Users of financial analyses. Orientation in account sheets.
2. Index creation, their interpretation and predicable efficiency. Calculation of solidity indexes. Analysis of indexes, influences on their amount. Appreciation and estimation of results.
3. Calculation of indexes of financial stability. Meaning, using. Influences having effect on values of these indexes.
4. Indexes of turns. General formula. Calculation of separate indexes, their analysis and recommendation for management of turns.
5. Indexes of profitability. Production of separate indexes and their interpretation. Comparison of separate methods of calculation of profitability. Evaluation and recommendation.
6. Evaluation of analysed company on base of existing results. Report of financial analytic with final recommendations.
7. Total indexes of financial analysis – Altmann’s index, fast test, pyramidal analysis.
8. Comparing of results of analysis by comparing of results of particular and total indexes.
9. EVA indicator. Data editing of bookkeeping for needs of EVA calculation. Evaluation, meaning and using.
10. Financial plans editing on the basis of financial analyses results. Individual processing of FA analytic’s report based included, based on simplified example.

Work placements

Not applicable.

Aims

Be able, pursuant to account sheet, to calculate basic indexes of financial analysis and to interpret them rightly.

Specification of controlled education, way of implementation and compensation for absences

Extent and forms are specified by guarantor’s regulation updated for every academic year.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

GARRISON, Ray a NORREN, Eric a BREWER, Peter: Managerial Accounting. McGraw-Hill/Irwin, 2011. ISBN 978-0078111006. (EN)
HINDLS, Richard a HRONOVÁ, Stanislava a NOVÁK, Ilja a JAROŠOVÁ, Eva: Analýza dat v manažerském rozhodování. Grada Publishing, 1999. ISBN 80-716-9255-7. (CS)
MAŘÍKOVÁ, Pavla a MAŘÍK, Miloš: Moderní metody hodnocení výkonnosti a oceňování podniku. Ekopress, 2005. ISBN 80-86119-61-0. (CS)
PAVELKOVÁ, Drahomíra a KNÁPKOVÁ, Adriana: Výkonnost ekonomiky z pohledu finančního manažera. Linde Praha, 2009. ISBN 978-80-86131-85-6. (CS)

Recommended reading

Not applicable.

Classification of course in study plans

  • Programme N-K-C-SI Master's

    branch E , 2 year of study, winter semester, elective

  • Programme N-P-C-SI Master's

    branch E , 2 year of study, winter semester, elective

  • Programme N-P-E-SI Master's

    branch E , 2 year of study, winter semester, elective

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer

doc. Ing. Jiří Blažek, CSc.

Syllabus

1. Basic areas of financial analysis, its sense, sorts of indexes. Users of financial analyses. Orientation in account sheets.
2. Index creation, their interpretation and predicable efficiency. Calculation of solidity indexes. Analysis of indexes, influences on their amount. Appreciation and estimation of results.
3. Calculation of indexes of financial stability. Meaning, using. Influences having effect on values of these indexes.
4. Indexes of turns. General formula. Calculation of separate indexes, their analysis and recommendation for management of turns.
5. Indexes of profitability. Production of separate indexes and their interpretation. Comparison of separate methods of calculation of profitability. Evaluation and recommendation.
6. Evaluation of analysed company on base of existing results. Report of financial analytic with final recommendations.
7. Total indexes of financial analysis – Altmann’s index, fast test, pyramidal analysis.
8. Comparing of results of analysis by comparing of results of particular and total indexes.
9. EVA indicator. Data editing of bookkeeping for needs of EVA calculation. Evaluation, meaning and using.
10. Financial plans editing on the basis of financial analyses results. Individual processing of FA analytic’s report based included, based on simplified example.

Exercise

26 hod., compulsory

Teacher / Lecturer

doc. Ing. Jiří Blažek, CSc.

Syllabus

1. Providing of accounting statements of construction companies, orientation in accounting statements.
2. Determination of elementary methods at selected construction company.
3.-4. Assessment of ratio indexes of selected construction company.
5. Evaluation of analyzed company based on achieved results. Report of financial analyst with recommendations.
6.-7. Assessment of aggregate indexes of financial analysis of selected construction company.
8. Comparison of results of analysis by comparing of results of individual and aggregate indexes.
9. Individual carrying out of financial analysis including the report of analyst based on accounting statements of construction company.
10. Credit test