Overview

Course code: ACCT-UB.0003

This course helps you understand the flow of money in a business and its link to shareholder value and credit ratings. The course presents a framework for analysis and provides spreadsheets to implement the framework. All materials are available for free at http://www.godeohlson.com/. There are eight core spreadsheets that help addresses the following questions:

Financial Statement Analysis Spreadsheets

Valuation Spreadsheets

Prerequisites

Help and Office

Materials

Assignments

Exams and Grading

The grades will be based on the assignments (20%), midterm exam (30%), and final (50%). If your score on the midterm is poor but the final score is good, your final will count towards 100%. It is not necessary for you to get a full score on the assignments; any score above 80% is considered a passing score. The final exam will not be rescheduled for any reasons except medical or family emergencies.

Schedule

All classes will be held in KMC 4-60 on Tu and Th from 9:30 AM to 10:45 AM except during the spring break.

Midterm: Thursday, March 8

Final: SUNDAY, May 6

Class Topic
1
  • Introduction to FSA
  • Link between modeling and FSA
2
  • Unlevered versus levered analysis and the link to DCF
3
  • Six key value drivers
4
  • Analyzing sales growth
5
  • Analyzing margins
6
  • Analyzing the ratio of operating assets to sales
7
  • Analyzing the ratio of operating liabilities to sales
8
  • Analyzing liquidity
9
  • Analyzing leverage
10
  • ROI metrics: ROE and ROIC
11
  • Price-earnings ratio, price-to-book ratio, and dividend yield
12
  • Synthesis and review