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Business Diagnosis

Code: 104681
Credits: 6
2026/2027
Degree programme Type Course
Business Administration and Management OP 4

Contact lecturer

Name :
Sergi Cadena Abadias
Email :
sergi.cadena@uab.cat

Group languages

You can consult this information at the end of the document.

Prerequisites

In order to correctly follow the course, it is strongly recommended to have passed the previous courses: Introduction to Accounting and Financial Statements Analysis from the Business Degree. For optimal follow-up, it is highly recommended to have successfully passed other subjects in the accounting branch such as "Cost Accounting", "Management Accounting", among others.

Objectives

The course is oriented to the empirical analysis of companies, from the data published in their Financial Statements. The basic concepts aquired during the course will be related to profitability, productivity, sales mix, price index.

After successfully passing the course, the student will be able to: 

  • Extract data and information from the financial statements, and obtain certain financial KPI to perform the analysis.
  • Perform a Profitability analysis methodology.
  • Perform a Productivity analysis methodology.

Learning outcomes

  1. Capacity to continue future learning independently, acquiring further knowledge and exploring new areas of knowledge.
  2. Select and generate the information needed for each problem, analyse it and make decisions based on this information.
  3. A capacity of oral and written communication in Catalan, Spanish and English, which allows them to summarise and present the work conducted both orally and in writing.
  4. Organise work, in terms of good time management and organisation and planning.
  5. Demonstrate initiative and work independently when required.
  6. Use available information technology and be able to adapt to new technological settings.
  7. Know the accounting information systems to support the management and functions of the same in the management of organizations.
  8. Identify decisions that can be taken through the analysis and interpretation of accounting information.
  9. Recognise the qualitative variables that can influence decision-making based on the financial statements.
  10. Register for accounting the economic and financial reality of organizations in accordance with the principles, standards and conventions applicable in each case.
  11. Develop accounting information synthesis applying accounting principles and standards, as required.
  12. Develop information relating to a system of management accounting.
  13. Using the tools of financial planning and budgeting of an organization
  14. Demonstrate ethical behavior in the preparation of financial statements.
  15. Interpret financial indicators of an entity and understand the decisions that can be taken from their analysis
  16. Interpret economic indicators of an entity and its relationship to the profitability and productivity of the same.
  17. Make a diagnosis from the economic and financial analysis of an entity
  18. Analyze business sectors from the annual accounts.
  19. Students must be capable of collecting and interpreting relevant data (usually within their area of study) in order to make statements that reflect social, scientific or ethical relevant issues.
  20. Identify the social, economic and environmental implications of academic and professional activities within the area of your own knowledge.
  21. Analyse the indicators of sustainability of academic and professional activities in the areas of knowledge, integrating social, economic and environmental dimensions.
  22. Critically analyse the principles, values and procedures that govern the exercise of the profession.

Contents

1. EVALUATION OF THE MANAGEMENT OF A COMPANY FROM THE OUTSIDE: SOURCES OF BASIC INFORMATION


1.1 The perspective of external analysis: objectives; possibilities; limitations.
1.2 The balance sheet: standard structure; implicit criteria; interpretation.
1.3. The income statement: standard structure


2. TABLE OF ECONOMIC-ACCOUNTING VARIABLES FOR ANALYSIS


2.1 Normalized variables for the balance sheet; compound variables; basic ratios.
2.2 Translation / summary of a balance sheet in terms of the defined variables.
2.3 Normalized variables for the income statement; unit costs / imputed costs
2.4 Translation / summary of a statement of results, in terms of the defined variables
2.5 Non-operating assets and results
2.6 Extraordinary results


3. EVALUATION OF ECONOMIC FUNCTIONING: THE PROFITABILITY RATE


3.1 The concept of profitability of a company, and its different versions
3.2 Models of simple factorial analysis of profitability


4. DYNAMIC ANALYSIS: CHANGES EXPLAINED BY EACH ELEMENTAL VARIABLE


4.1 Partial differences method
4.2 The method of averages
4.3 Variation rate method; index and rate of change of a temporal variable; the method of 'rates
of continuous variation '


5. PROFITABILITY ANALYSIS MODEL, BY STAGES (I)


5.1 Limitations of simple factor analysis models
5.2 A more precise scheme: different concepts of profitability
5.3 Analysis of the return on equity and the leverage effect
5.4 Part of the variation in profitability explained by each determining variable


6. MODEL OF PROFITABILITY ANALYSIS, BY STAGES (II)


6.1 Analysis of the company's profitability
6.2 Analysis of the profitability of the operation
6.3 Determination of the effect attributable to each immediate explanatory variable


7. MODEL OF PROFITABILITY ANALYSIS, BY STAGES (III):


7.1 Analysis of the net margin rate; variation explained by each determinant variable
7.2 Determination of the effect attributable to each immediate explanatory variable


8. APPLICATIONS OF THE PROFITABILITY ANALYSIS MODEL


8.1 Global application of the model: really elementary explanatory variables; determination of the incidence of each elementary management variable


 


9. PRODUCTIVITY AS AN EXPLANATORY VARIABLE OF MARGIN RATE (I)


9.1 The concept of productivity of a company, and its different versions
9.2 Measuring productivity from the financial statements: Model and terminology
9.2 Measuring productivity from the financial statements: Model and terminology
9.3 Simplified analysis of the gross margin rate: an output, an input
9.4 The analysis of the gross margin rate in the general case
9.5 Determination of the effect attributable to each determining variable


10. PRODUCTIVITY AS AN EXPLANATORY VARIABLE OF MARGIN RATE (II)


10.1 Interpretation of the index of variation of the productivity of the imputed costs
10.2 Partial productivity of each type of productive factor included in the imputed costs
10.3 Determination of the effect on the margin rate of the variation in the productivity of each factor.
10.4 Calculating Price Indexes: A Practical Approach


11. EXTENSION OF THE PRODUCTIVITY ANALYSIS MODEL


11.1 Application to the analysis of the variable non-imputed cost rate
11.2 Application to the analysis of the rate of fixed non-imputed costs
11.3 Determination of the effect on the net margin rate
11.4 Application to the comparison of productivity between two companies


12. LABOR PRODUCTIVITY AND CAPITAL PRODUCTIVITY.


12.1 Productivity and level of employment of the labor factor (and other semi-fixed factors)
12.2 Determination of the effects on the margin rate of technical productivity and the level of employment.
12.3 Elements that can vary productivity per hour worked; productivity and quality of life.
12.4 Calculation and interpretationof the index of variation of the productivity of the Fixed Assets.
12.5 Interpretation of the productivity variation index in the case of a variable cost such as 'Commissions'.


13. APPLICATIONS.


13.1 Summary of the 'margin rates - productivity' model.
13.2 Determination of the incidence on the margin rate of each final elementary variable.



14. EMPIRICAL STUDIES OF PROFITABILITY AND PRODUCTIVITY


14.1 Presentation of the work done by each group of students

Learning activities and methodology

Title Hours ECTS Learning outcomes
Tutorship 7 0.28
Practical Courses 17 0.68 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22
Theory Classes 32.5 1.3 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22
Treball autònom: lectura dels textos, estudi dels contingut, preparació i resolució d'exercicis. Realització del treball d'aplicació 88 3.52
The following describes the organization and teaching methodology that will be followed in the different training activities.
 
Theory classes:
The contents of the subject will be taught by the teacher in the form of master classes, along with the study of different business cases based on real Catalan companies.
 
Practical classes:
The practical class sessions will be combined with the theory ones, so no specific session is set for the week. These classes will be dedicated to the resolution and commentary of the exercises and cases proposed by the teacher. In the practical classes it is necessary to use a computer or tablet with a \"Spreadsheet\" program such as Microsoft Excel, or Google Sheets.
 
Evaluation, supervision and monitoring tests:
During the course there will be two individual assessment tests described in the assessment section of this guide.
On the other hand, students will form groups of 2-3 people to carry out a work of application to real data of a company or sector of the models of analysis of the profitability and productivity students. The results of the work must be presented and defended in class in the framework of an oral presentation in executive format (approximately 10 minutes per group), and at the same time submit a dossier with the business analysis carried out.
 
Tutorship
There will be individual tutorship sessions for those students who wish. The aim of these sessions is to resolve doubts, comment on exercises or review concepts. In them the student is the one who must take the initiative raising the questions to treat.
 
AI USE
 
Permitted use: “In this subject, the use of Artificial Intelligence (AI) technologies is allowed as an integral part of the development of the work, provided that the final result reflects a significant contribution of the student in the analysis and personal reflection. The student must clearly identify which parts have been generated with this technology, specify the tools used and include a critical reflection on how these have influenced the process and the final result of the activity. The lack of transparency in the use of AI will be considered a lack of academic honesty and may lead to a penalty in the grade of the activity, or greater sanctions in serious cases.”
 
Annotation: within the schedule set by the centre or degree programme, 15 minutes of one class will be reserved for students to evaluate their lecturers and their courses or modules through questionnaires.

Assessment

Continuous assessment activities

Title Weight Hours ECTS Learning outcomes
Realització i Presentació d'un Treball d'Aplicació 20% 1.5 0.06 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22
Examen Rendibilitat (Temes 1-8) 40% 2 0.08 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22
Examen Productivtat (Temes 9-14) 40% 2 0.08 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22

The evaluation of the student will be done continuously based on the following evidence:

- Examination of the content of topics 1 to 8 lasting approximately 2 hours. This control will consist of theoretical questions and practical exercises related to the topics to be evaluated. It will take place during teaching hours. The mark of this control must be at least 4 and a weight of 40% to obtain the final mark.

- Examination of the content of topics 9 to 14 lasting approximately 2 hours. This control will consist of theoretical questions and practical exercises related to the topics to be evaluated. The grade for this exam must be at least 4 and weighs 40% in the final grade of the course.

- Application work. Students will deliver the written work to the teacher and make a presentation in class in executive format, being able to use power point supports, and where they will answer the questions asked. To pass the subject it is essential to present this application work. The grade for this work must be at least 4 and weigh 20% in the final grade.

The student must take all the tests provided in order to be evaluated. Non-participation in any of the evaluation activities will not allow you to promise with the others. The subject can only be evaluated by the evaluation system described above. A student who has participated in two of the previous assessment activities is considered to be participating in continuous assessment. Therefore, a student will be listed as NOT ASSESSED when he has only participated in one assessment activity.

In application of the regulations of the Faculty of Economics and Business, those students who have obtained a grade equal to or higher than 3.5 and lower than 5 have the option of taking a re-assessment test. This test will consist of theoretical questions and practical exercises related to all the topics of the subject. Thequalification of the re-evaluation will be qualitative and will have only two possible options: FIT or NOT FIT. Students who obtain an APTE grade are considered to pass the subject with a maximum numerical grade equal to 5. If the student obtains a NOT APTE grade, he / she does not pass the subject and will be

will qualify with the grade obtained before the re-evaluation.

This subject does not offer the option for comprehensive evaluation


The completion of assessment activities is subject to the provisions set out in this course guide and in the "Policy of the School of Economics and Business on the Detection of Irregularities during Assessment Activities", which regulates the conditions under which assessment tasks are conducted and the procedures applicable in cases where indications of irregularities are detected. Students are encouraged to consult the policy.

Bibliography

Manual: Análisis del Funcionamiento Economico de las Empresas - Joaquim Vergés Jaime - 6a Edición Octubre 2020 - Deparament d'Economia de l'Empresa

The book is available in this link:  enllaç

This document is available at the Biblioteques de la UAB. It is advised to check on the different assets the Biblioteques UAB can offer: 

  1. Biblioteques UAB Digital Serach Engine.
  2. Digital Books and Magazines.
  3. E-book Catedra España.
  4. Thomson Reuters Proview.
  5. Virtual Bibliotque Tirant.

Software

During all the session, a personal computer/tablet is compulsory with: 

  • Excel Sheet: Excel, Google Sheet or similar.
  • Word Sheet: MS Word, Google Docs.
  • Internet Browser.
  • SABI database. Available on Biblioteques UAB.

Course groups and languages

The information provided is provisional until November 30. After this date, you will be able to consult the language of each group through this link. To access the information, you will need to enter the course CODE

Type of teaching Group Language Semester Shift
(TE) Theory 1 Catalan first semester morning-mixed
(PAUL) Classroom practices 1 Catalan first semester morning-mixed