ABOUT THE COURSE:Financial Analysis and Forecasting is a prerequisite to rational financial decision making at the end of all the stakeholders in the corporate world. Understanding the intricacies of information disseminated through income statement, balance sheet and cash flow statements and their interpretation is pivotal and serve as the premise to decisions pertaining to mobilization and utilization of funds. Analysis of financial statements delves into different techniques used to unfold the intermingled causal relationships among financial variables and also facilitate users of financial information to foresee the future. The contents of the course intend to help financial statement users to interpret the statements and appraise the financial performance to make them more comparable, consistent over time and more representative of economic reality. At the backdrop of financial analysis, different genres of stakeholders would be able to assert about financial impediments and execute decisions more cautiously which are having near and far future implications.INTENDED AUDIENCE: UG and PG students of MBA, M.com, CA, CMA and B.comPREREQUISITES: 10+2INDUSTRY SUPPORT: Widely used in all industries and more rigorously used in Banking, financial services and KPO industries.

Syllabus

Week 1:Prologue to Financial Statement Analysis; Regulatory framework of Financial Disclosure; Users of financial information; Income Statement and Balance sheet; Adversarial to Financial Statements.
Week 2:Types and Techniques of Financial Statement Analysis; Horizontal and Vertical analysis; Common-size statement; Comparative statement; Interpretation and problem solving
Week 3:Ratio Analysis; Liquidity Ratios- Simple; Weighted and Time-adjusted Ratios; Efficiency Ratios-Current asset movement Ratios; Interpretation and problem solving.
Week 4:Ratio Analysis-Long term Solvency Ratios; General Profitability Ratios; Market based profitability Ratios; Interpretation and Problem solving.
Week 5:Predictive Models using Financial Ratios- Du-Pont Model; Altman’s Model of Bankruptcy; Interpretation and Problem solving.
Week 6:Fund Flow Analysis- Concept; Flow of funds; Schedule of Chanes in working Capital; Funds from Operations; Funds flow statement; Problem solving and implications.
Week 7:Cash Flow Analysis; Introduction and Steps in Cash Flow Analysis- Operating Cash flow; Investing Cash flow; Financing Cash flow.
Week 8:Preparation of Cash Flow Statement; Interpretation and Problem solving; Free cash flow.
Week 9:Financial Forecasting; Introduction and framework, Forecasting Sales, Cost and Funds.
Week 10:Forecasting Income Statement-Methods and Procedures; Problem solving.
Week 11:Forecasting Balance sheet and Cash Flow Statement; Procedures; Preparation of Proforma Balance sheet and Proforma Cash flow Statement.
Week 12:Business Valuation-Overview of models; Asset based valuation models; Discounted Cash flow Valuation model; Abnormal Earning Model; Interpretation and comments