"This subject is very practical as it aims to equip students with the knowledge to meet the requirements of corporate managers, market investors, bankers, credit analysts, and others. This course introduces various topics for analyzing the financial situation of a company. Given that the analysis process is mainly based on the company's financial statements, the analysis of the financial statements is an important part of evaluating the quality of the firm's earnings, which leads to the firm’s profitability and the sustainability of the firm’s income, and hence the financial strength of the company. In addition, financial analysis also emphasizes the firm's future prospects by forecasting the firm's performance. This analysis process helps investors determine the intrinsic value of the firm’s stock share for important decisions in corporate financial management or investments.
The structure of this unit, therefore, includes four main issues: (1) an overview of financial statement analysis, (2) Accounting analysis, (3) Financial analysis, and (4) Prospective analysis. In detail, this unit presents the role of financial statement analysis in different types of business and the importance of accrual accounting for the analysis. This unit also emphasizes the process and methods of financial analysis, including profitability analysis, analysis of sources and uses of funds, and risk analysis. Based on those analyses, financial statements and equity valuation can be forecasted."