NBA 5061 - Comprehensive Financial Statement Analysis

Fall. 3 credits. Letter grades only (no audit).

Enrollment limited to: non-Johnson School students.

T. Dyer.

This course explores the practice of financial statement analysis and equity research. The course includes two parts. In the first part, students develop a set of core skills essential to equity research and financial statement analysis. We cover information sources, strategic ratio analysis, cash flow analysis, forecasting financial statements, and firm valuation using discounted cash flow and residual income techniques. The second part focuses on more advanced financial statement topics and specialized industries. We cover investment research, accounting analysis, credit analysis, banking, mergers and acquisitions, and issues relating to international financial statement analysis. The course emphasizes the practical application of the material using a combination of lecture, cases, and hands-on examples. Students are evaluated based on two equity research projects and two exams. The course presumes an understanding of basic corporate finance theory and basic financial accounting, but little or no previous experience in security valuation. The class is designed for students planning for careers in investment banking, corporate management, venture capital, security analysis, credit analysis, consulting, or public accounting.