Financial statement analysis. Sectoral applications of financial statement analysis. Influence of the economic sector on the firm's financial statements. Updated cash flows. Static and dynamic study of the firm's financial situation, valuation and interpretation of its financial statements, and financial valuation ratios.
Business Financial Analysis is taught in the first four months of the third year of the double Degree in Law and Business Administration and Management. It consists of 6 European credits, equivalent to 150 hours of student work. We understand that the study of Financial Analysis, apart from the immediate utility it has for its content for the development of the profession, is characterized because, in addition, it provides students with a very important reference that helps them develop in the world of economics and the right. The economic-financial-accounting language is essential for the professional practice for which the degree is accredited. The student to take this course requires prior knowledge in accounting.
As a result of the accounting process, information is obtained that, in a synthetic and aggregated manner, reflects the economic-financial situation of the entity at a given time, and the result of the operations carried out in a certain period. These are the financial statements, or economic-financial statements, or simply financial statements.
This information should be useful for users to make their economic and financial decisions in a rational manner. Therefore, the analyst's task is, to some extent, the reverse of that carried out by the accountant. It must interpret the accounting facts, once added, and summarized in the financial statements, in order to know the real economic and financial reality, as well as the causes and probable consequences of the actions carried out by the company.
The aim is for students to acquire sufficient knowledge so that, through the accounting information and the corresponding methodology, they are able to make a diagnosis about the economic and financial situation of the company, and its future projection.
Design economic-financial reports on the current and future situation of the company for any user interested in business information, especially for fund lenders and investors.
This subject deepens in the study of the financial asset since most of the accounting operations existing in the company have a financial component. Without forgetting, the basic knowledge that prepare students for the study of later subjects, especially those related to accounting and finance.