- Accounting: the language of business
- In week1, we will cover an introduction to the balance sheet as business’ picture, focusing on accounting and its users and how a balance sheet is built. Next, we go on to understand the income and cash flow statements as business movies focusing on their principal accounts. Finally, we integrate the 4 statements using a restaurant as example.
- Income Statement Analysis
- In week 2, we will cover: company’s financial condition and performance across time (horizontal analysis) and to a base amount (vertical analysis); margin – a profitability measure; EBIT and EBITDA (the income provided by the company’s business, the operating result); net income (the results for the company’s shareholders); tax shield.
- Balance Sheet Analysis
- In week 3 we will better understand the balance sheet and important analyses we can perform with its data: liquidity ratios; receivables and inventories ratios; operational and financial liabilities; working capital; and cash cycle.
- Cash Flow Analysis
- In week 4 we will discuss cash flow analysis, covering: cash flow from operations; cash flow from investing; cash flow from financing.
- Integrated Company Analysis
- In week 5 we will put everything together and perform a step-by-step analysis.
