Università Roma Tre

Main topics of the course

1. Objectives, contents and use of financial analysis
2. Concepts of strategic analysis: analysis of competitive forces as foundation of financial analysis
3. Adjustments and reclassifications of accounting data and financial reports
4. Performance analysis of non-financial firms:
a. Accounting ratios analysis
b. Cash flows analysis and preparation of cash flow statement
5. Forecast analysis: structure and logic of forecast analysis and preparation of forecast documents
6. Financial analysis and firm value: DCF, DDM, abnormal profit, abnormal profit growth, multiples
7. Working capital management
8. Cost of debt and estimation of bankruptcy risk
9. The industry of asset management: mutual funds and investment companies
10. Risk and return of portfolios and mutual funds: TWR, MWR, risk measures and risk-adjusted performance measures

1. Palepu K.G. – Healy P.M. – Peek E., Business analysis and valuation. IFRS edition, fourth edition, Cengage Learning, 2016.
2. Berk J. – De Marzo P., Finanza aziendale 1, 4th edition, Pearson, 2018, chapter 6
3. Berk J. – De Marzo P., Finanza aziendale 2, Pearson, 2018, chapters 8-9 and §5.4
4. Feibel B. J., Investment performance measurement, Frank J. Fabozzi Series, Wiley, 2003, chapters 3-4-5-7-9-10-11-12-13-14