CPF_JCUV How to read financial statements

Faculty of Economics and Administration
Autumn 2025
Extent and Intensity
0/0/0. Type of Completion: -.
In-person direct teaching
Teacher(s)
Ing. Martina Sponerová, Ph.D. (lecturer)
Guaranteed by
Ing. Martina Sponerová, Ph.D.
Department of Finance – Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Supplier department: Department of Finance – Faculty of Economics and Administration
Prerequisites
A basic understanding of economics and mathematics at the secondary school level, along with prior knowledge of accounting, is recommended.
Course Enrolment Limitations
The course is offered to students of any study field.
Course objectives
The aim of the course is to familiarize students with the content, structure, and informational value of basic financial statements. Students will learn how to read, analyze, and interpret financial information from the balance sheet, income statement, and statement of cash flows. Emphasis is placed on practical understanding and the ability to apply this knowledge to real-world examples.
Learning outcomes
Upon completion of the course, students will be able to: Identify and describe the main financial statements and explain their interrelationships. Understand the structure and components of the balance sheet, income statement, and statement of cash flows. Assess a company’s financial health using key financial ratios. Apply basic techniques of horizontal and vertical analysis. Interpret the differences between accounting profit and cash flows. Critically evaluate the information presented in financial statements.
Syllabus
1. Introduction to financial reporting 2. The balance sheet – structure of assets, liabilities, and equity; the principle of equilibrium 3. The income statement – revenues, expenses, EBITDA, EBIT, and net profit 4. The cash flow statement – operating, investing, and financing activities; direct vs. indirect method 5. Interrelationships between financial statements – how the statements are connected 6. Basic financial ratios – liquidity, profitability, leverage, and activity ratios 7. Horizontal and vertical analysis – year-on-year comparisons and ratio interpretation 8. Practical interpretation of financial statements – analysis of real-world company reports
Literature
  • VERNIMMEN, Pierre. Corporate finance: Theory and Practice. 2017th ed. John Wiley & Sons, 2017. 5. vyd. ISBN 978-1-119-45180-8. info
  • KISLINGEROVÁ, Eva and Jiří HNILICA. Finanční analýza : krok za krokem. 2. vyd. Praha: C.H. Beck, 2008, xiii, 135. ISBN 9788071797135. info
  • RŮČKOVÁ, PETRA. Finanční analýza: metody, ukazatele, využití v praxi 7. aktualizované vydání., Praha: Grada Publishing. 2021. ISBN 978-80-271-3124-2. info
Teaching methods
Lectures featuring real examples and reports from well-known companies Seminars focused on practical exercises and data interpretation Discussions and presentations involving the analysis of current financial reports
Assessment methods
Upon successful completion of the course, students will receive a certificate.
Language of instruction
Czech
Further comments (probably available only in Czech)
The course is taught only once.
The course is taught in blocks.
Note related to how often the course is taught: Termín konání: 6. 11. 2025 v učebně VT105, 9:00–15:30.
The course is also listed under the following terms Autumn 2022, Spring 2023, Autumn 2023, Spring 2024, Spring 2025.
  • Enrolment Statistics (recent)
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