FIN510 Financial Statement Analysis
Course Catalog Description
This course deals with:
(1) Interpretation of financial statements,
(2) Evaluation of the alignment between business strategies and financial performance,
(3) Identification of potential business risks, and
(4) Comparison of performance of different companies.
The course introduces business analysis and valuation techniques and utilizes real world data to help students comprehend financial statement analysis tools. Topics cover financial statement information, tools of financial statement analysis, and forecasting and valuation techniques. By the end of this course, you should be able to
• Demonstrate proficiency in financial reporting mechanics, including the effect of transactions and adjusting entries on financial statements, and the construction of financial statements
• Read and understand financial statements including the income statement, balance sheet, statement of changes in shareholders’ equity, and statement of cash flows
• Understand the accounting choices that companies make and the implications of these choices for the information presented in a company’s financial statements
• Use common-size analysis and ratio analysis to evaluate a company on the following dimensions: profitability, efficiency, liquidity, and solvency.
Course Format and Structure
• Our weeks will run from Monday to Sunday. I will post information for the upcoming week by Sunday evening, so that when you log in on Monday mornings, you can begin the new week.
• Given the importance of Announcements, please check your Canvas Account settings to ensure that Notification Preferences for Announcements are set to “Notify me right away.”
• Adherence to deadlines is an important part of being a professional, and this course is no exception. Course requirements must be completed and submitted by the specified deadline. Due dates and delivery time deadlines are defined as Eastern Time (as used in Hoboken, NJ). To encourage you to stay on schedule, grade penalties will be applied to late assignments.
Instructor Contact Information
• I will typically respond on the same business day to any email received during working hours. As noted above, please include “FIN 510” in the email subject line.
• I am available to schedule meetings by appointment Monday through Friday through the semester.
Dr. Elaine Henry
||firstname.lastname@example.org||Babbio Center Room: 408|
Course Participation: Attendance, In-class Activities
Attendance at all classes is expected. Each member of the class is expected to arrive, be seated, and be ready for class on time, and to stay in class for the entire session. Participation also includes fully participating in all in-class activities and discussion board. If you are unwell and cannot attend a class, please contact me via email to arrange alternative participation.
Specific instructions and point weighting for each assignment will be provided during the semester. Assignments will be given most weeks following class on Thursday and will usually have a due date of the following Monday by end of day. As noted, grade penalties will be applied to late assignments.
There will be two exams during the course as listed on the course schedule. The first exam will cover financial reporting mechanics including preparation of financial statements. Following the first exam, additional assignments may be given to ensure your full understanding of basic financial reporting. The format of the final will be discussed later in the semester.
Before entering the classroom, please turn off and put away your cell phone (and anything else that may beep or ring). Please behave professionally and courteously. Laptops: Use of laptops or tablet computers during class is not permitted except when specified by the instructor. Please use your laptop only for class-related work and only when specified by the instructor. Texting and similar activities are very distracting, not only for you, but for those sitting around you.
EXAM ROOM CONDITIONS
The following procedures apply to in-class exams for this course. Students may use one of the approved calculator models noted below. Students may not borrow from or share a calculator with another person during an exam. Students may not use any other electronic devices during exams. Students are not allowed to work with or talk to other students during exams. As the instructor, I reserve the right to modify any conditions set forth below by printing revised Exam Room Conditions on the quiz or exam.
Stevens Institute of Technology is dedicated to providing appropriate accommodations to students with documented disabilities. The Office of Disability Services (ODS) works with undergraduate and graduate students with learning disabilities, attention deficit-hyperactivity disorders, physical disabilities, sensory impairments, psychiatric disorders, and other such disabilities in order to help students achieve their academic and personal potential. They facilitate equal access to the educational programs and opportunities offered at Stevens and coordinate reasonable accommodations for eligible students. These services are designed to encourage independence and self-advocacy with support from the ODS staff. The ODS staff will facilitate the provision of accommodations on a case-by-case basis. Disability Services Confidentiality Policy Student Disability Files are kept separate from academic files and are stored in a secure location within the Office of Disability Services. The Family Educational Rights Privacy Act (FERPA, 20 U.S.C. 1232g; 34CFR, Part 99) regulates disclosure of disability documentation and records maintained by Stevens Disability Services. According to this act, prior written consent by the student is required before our Disability Services office may release disability documentation or records to anyone. An exception is made in unusual circumstances, such as the case of health and safety emergencies. For more information about Disability Services and the process to receive accommodations, visit https://www.stevens.edu/office-disability-services. If you have any questions please contact: Phillip Gehman, the Director of Disability Services Coordinator at Stevens Institute of Technology at email@example.com or by phone (201) 216-3748.
Name and Pronoun Usage As this course includes group work and in-class discussion, it is vitally important for us to create an educational environment of inclusion and mutual respect. This includes the ability for all students to have their chosen gender pronoun(s) and chosen name affirmed. If the class roster does not align with your name and/or pronouns, please inform the instructor of the necessary changes. Inclusion Statement Stevens Institute of Technology believes that diversity and inclusiveness are essential to excellence in academic discourse and innovation. In this class, the perspective of people of all races, ethnicities, gender expressions and gender identities, religions, sexual orientations, disabilities, socioeconomic backgrounds, and nationalities will be respected and viewed as a resource and benefit throughout the semester. Suggestions to further diversify class materials and assignments are encouraged. If any course meetings conflict with your religious events, please do not hesitate to reach out to your instructor to make alternative arrangements. You are expected to treat your instructor and all other participants in the course with courtesy and respect. Disrespectful conduct and harassing statements will not be tolerated and may result in disciplinary actions
MENTAL HEALTH RESOURCES
Part of being successful in the classroom involves a focus on your whole self, including your mental health. While you are at Stevens, there are many resources to promote and support mental health. The Office of Counseling and Psychological Services (CAPS) offers free and confidential services to all enrolled students who are struggling to cope with personal issues (e.g., difficulty adjusting to college or trouble managing stress) or psychological difficulties (e.g., anxiety and depression). Appointments are can be made by phone (201-216-5177).
In the event of an urgent or emergent concern about the safety of yourself or someone else in the Stevens community, please immediately call the Stevens Campus Police at 201-216-5105 or on their emergency line at 201-216-3911. These phone lines are staffed 24/7, year round. Other 24/7 resources for students dealing with mental health crises include the National Suicide Prevention Lifeline (1-800-273-8255) and the Crisis Text Line (text “Home” to 741-741). If you are concerned about the wellbeing of another Stevens student, and the matter is not urgent or time sensitive, please email the CARE Team at firstname.lastname@example.org. A member of the CARE Team will respond to your concern as soon as possible.
Required Text: International Financial Statement Analysis (CFA Institute Investment Series), 4th edition,
2020 by Thomas R. Robinson, Elaine Henry, and Michael A. Broihahn.
This text is published by the CFA Institute and includes parts of the CFA (Chartered Financial Analyst) curriculum. Authors of the text are not compensated based on quantity of sales. Also, please note that the accompanying workbook is NOT required
Class notes (lecture slides) and some other related materials will be available on Canvas, which can be accessed at: stevens.edu/canvas. It is important that you regularly check Canvas and your Stevens e-mail account so that you do not miss any important course announcements. For course access or support, contact the TRAC at 201-380-6599 or 201-216-5500.
For exams, students may use one of the calculator models authorized for use during CFA program exams:
• Texas Instruments BA II Plus (including BA II Plus Professional)
• Hewlett Packard 12C (including the HP 12C Platinum, 12C Platinum 25th anniversary edition, 12C 30th anniversary edition, and HP 12C Prestige)
|1||Participation(attendance and in-class activities)||12%|
|Week 1||2-Sep||Overview of Financial Statement Analysis||Ch 1|
|Week 2||9-Sep||Financial Reporting Standards & Review of Mechanics of Financial Accounting||Ch 2||Assignment 1|
|Week 3||16-Sep||Income Statements||Ch 3||Assignment 2|
|Week 4||23-Sep||Balance Sheets||Ch 4||Assignment 3|
|Week 5||30-Sep||The Statement of Cash Flows||Ch 5||Assignment 4|
|Week 7||14-Oct||Financial Analys is Techniques||Ch 6|
|Week 8||21-Oct||Inventory||Ch 7||Assignment 5|
|Week 9||28-Oct||Long-lived Assets||Ch 8||Assignment 6|
|Week 10||4-Nov||Intercorporate Investments||Ch 13||Assignment 7|
|Week 11||11-Nov||Non-current Liabilities||Ch 10||Assignment 8|
|Week 12||18-Nov||Financial Reporting Quality & Evaluating Quality of Financial Reports||Ch 11 Ch 17||Assignment 9|
|25-Nov||NO CLASSES. THANKSGIVING|
|Week 13||2-Dec||Application of Financial Statement Analysis Basics of Forecasting and Valuation||Ch 6 Ch 12|
|Week 14||9-Dec||Course Recap & Presentations||Assignment 10|