Financial Management
The aim of the course is to teach students to apply analytical tools of financial management with an emphasis on management of the enterprise. These tools enable them to analyze the enterprise financially and to create a foundation for financial management and decision-making in an enterprise. Students should, in practical terms, get to know possibilities and limits of the financial statements analysis and should be able to independently assess the financial situation of the company. Students should gain knowledge and skills important for a knowledge and globalized society. In the framework of further external and internal environmental analyzes, they should be able to include the financial analysis of the enterprise in their wider context, including taking into account competing enterprises (benchmark). Based on the SWOT analysis, they should then propose an optimal business strategy with an emphasis on its financial side.
Teacher(s)
Syllabus
Lectures:
1. Introduction to the course, definition of fundamental terms, statements and methods used – defining the content of the course, conditions required to obtain colloquium – What is financial management and financial analysis, their application and limitation.
2. Vertical and Horizontal Analysis of the Balance Sheet and the Profit and Loss Statement. Students will gain experience with the vertical and horizontal analysis of the balance sheet and profit and loss statement (basis, time perspective), the strengths and weaknesses of both analyzes, including the analysis of the causes and consequences
3. Ratios (profitability, cash flow, liquidity, activity, debt and capital market). On the model example, students will gain experience with the construction of relevant indicators, various alternatives of constructions, interrelations and reporting ability of indicators, their strengths and weaknesses, including the analysis of the causes and consequences
4. Financial and operational leverage in the enterprise, pyramidal analysis. Students will gain experience with the financial and operating leverage, its design and impact on the performance of the business, including the strengths and weaknesses of both levers. On the model example, students will be introduced to the pyramidal analysis of DuPont and other pyramidal analyses, including their predictive abilities, strengths and weaknesses
5. Alternative cost and EVA indicator. Students will gain experience with the definition and problems of construction alternative capital costs, average weighted cost of capital (WACC), their construction using the CAPM model and the modular formulas as well as the EVA and its design. Differences between the two calculations will be analyzed, including impacts on the EVA indicator, their reporting ability, including the analysis of causes and consequences
6. Credit and bankruptcy models, rating and scoring. Students will gain experience on the model example with an overview of selected credit and bankruptcy models, scoring and rating. It will be analyzed the strengths and weaknesses of these models, including their causes and consequences
WCT
In the framework of WCT, students prepare a complex economic analysis of the company, analysis of the external and internal environment (including financial analysis), benchmarking (using statistical methods), SWOT analysis and design of the company strategy (taking into account the financial aspects of the company).
