Financial Statement Analysis

Course leader: Dr Adel Enpaya

Home Institution: Azzaytouna University, Libya

Course pre-requisite(s): Principle of Accounting, Financial Management.

Course Overview

This course presents an introduction to the basics of Financial Statement Analysis. The first part of the course will focus on understanding the main financial statements, namely, the balance sheet, the income statement, and the statement of cash flows. We will then focus on how we can understand the financial health and performance of the company by examining a number of important financial ratios that are derived from the financial statements of the company. The second part of the course will focus on the basics of finance. This includes the concept of time value of money, discounting cash flows, and capital budgeting. The course will also introduce the idea of real options, how they affect a project’s NPV, and their impact of the decision to accept/reject a project. Lectures on concepts will be supplemented with numerical examples.

Learning Outcomes

The objective of the Module is to equip students with the skills required to identify accounting information required for building trading strategies. After completing this module, you will be able to calculate the key financial ratios. 1-Financial Statement Analysis. 2-Financial Ratios 3-Evaluating investment projects.

Course Content

1-Introdution of Information Accounting system

2-Types of Financial Statements

3-Financial Statement Analysis

4-Instruments of Financial Statement Analysis.

5-Financial Ratios

6- The Time Value of Money.

Instructional Method
During the course, I will relay on lectures to give brief descripton on the topic, using data show in presenting the module during the course. I will give number of practicale examples. In groups, I will ask students to solve some problems related to the topic. I will ask students to solve problems at home, and we will resolve these problems in class.

Required Course Materials



1.Simple test at the end of the lecture. 2 Assignment at homework that student must do it every week. 3 A test in the middle of the course. 4 Final Exam at the end of the course.