This week’s topics
Advanced Financial Statement Analysis
- Statement of cash flows critique
- Earnings quality and distress prediction models
- Multi-dimensional ratio analysis
- Capital structure and liquidity assessments
- Analyzing the Statement of Cash Flows | Financial Statement Analysis
- How to Detect Earnings Management
- How Companies Manipulate Cash Flow
What you will be able to do
- 2.1 Analyse financial statements to assess the financial position of an organisation.
- 2.2 Recommend organisational decisions based on evaluation of financial statements using financial ratios.
Activity
Start with this week’s 3 videos, then: Seminar, guided reading and a short written task: analyse financial statements to assess the financial position of an organisation.
Study materials
Videos
- Analyzing the Statement of Cash Flows | Financial Statement Analysis · YouTube · Edspira · 14 min · for registered students
- How to Detect Earnings Management · YouTube · Edspira · 11 min · for registered students
- How Companies Manipulate Cash Flow · YouTube · Edspira · 13 min · for registered students
- Session 4: Financial Statement Analysis · YouTube · Aswath Damodaran · 20 min · for registered students
- Session 4A: The Statement of Cash Flows (Examples) · YouTube · Aswath Damodaran · 16 min · for registered students
Further resources
- MIT 15.535 Business Analysis Using Financial Statements, lecture notes: Ratio Analysis and Bankruptcy Detection · PDF · Other, slides · for registered students
- MIT 15.535 Business Analysis Using Financial Statements, lecture notes: Detecting Earnings Management · PDF · Other, slides · for registered students
- Intermediate Financial Accounting Vol. 2, Lyryx 2021-A, ch. 20: Statement of Cash Flows · PDF · Other, textbook chapter; pp. 311–380 · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.