BUSINESS ANALYSIS

Francesco Legrottaglie

Instructional goals

The course aims to transfer knowledge about tools and methods of business analysis, with particular focus on the topics of economic, financial and value performance of companies, as well as measuring ESG performance.

Prerequisites

Good knowledge of accounting and financial statement.

Intended learning outcomes

KNOWLEDGE AND UNDERSTANDING: the student will have acquired the knowledge of the tools and methods of analysis of the economic, financial and sustainability performance of companies; APPLYING KNOWLEDGE AND UNDERSTANDING: the student will have achieved the ability to analyze the economic, financial and sustainability performance of companies using the methods and techniques acquired; MAKING JUDGMENT: the student will have developed the ability to formulate critical judgments on the economic, financial and sustainability performance of companies; COMMUNICATION SKILLS: the student will be able to communicate ratings and judgments on the economic, financial and sustainability performance of companies; LEARNING SKILLS: the student will have acquired the learning skills necessary for the continuation and conclusion of studies independently.

Course Contents

Financial statement and sustainability reporting, IAS-IFRS e ITA GAAP, balance sheet and profit and loss statement reclassification, liquidity ratios, key performance indicator, leverage effects (operative and financial), double materiality, sustainability KPIs, value analisys and value diagram, Cash flow analysis

Reference Books

Analisi Aziendale, F. Di Lazzaro G. Musco, Giappichelli, 2021 – Casi svolti di analisi di bilancio, F. Di Lazzaro G. Musco, Giappichelli 2014 (e-book) – teaching material

Teaching Methods

Lessons, case studies, conferences.

Assessment Method

The evaluation of students with the status of attending; will take place through: - a group project work concerning financial and economic performance of a company with a weight of 50% on the final grade; - an intermediate test with a weight of 20% on the final grade; - a written exam consisting of questions on the theoretical and applied part of the course program with a weight on the final grade of 30%. The number and type of questions will be communicated before the exam. The evaluation of students with the status of non-attending; will take place (100%) through a final written test consisting of questions and exercises on the broader program reserved for them which will be communicated to them by the teacher and which will consist of the entire textbook as well as research documents and articles additional to those intended for students with the status of attending students.

Thesis assignment criteria

The assignment of the final paper will take place after an interview with the teachers to whom the student will indicate in a non-binding manner at least two topics of the course.

Week 1

Course presentation, financial reporting, IAS-IFRS and ITA GAAP financial statement; financial statement analysis: procedure, tools and objectives; double materiality: concept and objectives.

Week 2

From the balance sheet to the balance sheet reclassified with financial criteria.

Week 3

Financial solidity analysis and liquidity analysis.

Week 4

Financial solidity analysis and liquidity analysis: case study. Working capital duration analysis.

Week 5

Economic reclassification of the balance sheet and the profit and loss statement.

Week 6

Intermediate test. Profitability analysis.

Week 7

Profitability analysis.

Week 8

Profitability analysis: case study. Sustainability performance and sustainability KPIs.

Week 9

Operative leverage, structural leverage, integrated leverage, financial leverage. Case study

Week 10

Business plan: lecture and case study

Week 11

Cash flow statement and cash flow analysis.

Week 12

Cash flow analysis: case study. Closing of the course, clarifications, illustration of the examination procedures.