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Financial Reporting and Analysis

Code: 106397
Credits: 6
2026/2027
Degree programme Type Course
Business Administration and Management OB 3

Contact lecturer

Name :
Isabel Narbón Perpiña
Email :
isabel.narbon@uab.cat

Teaching staff

Maria Teresa Panades Marti
Marta Hernansaez Torras
Ahmed Mohamed Aymen Ahmed
Mahsa Memarian Rahmati Garakani

Group languages

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

Prerequisites

To make the most of the content provided is advised to have successfully passed Introduction to Accounting, Cost Accounting and Financial Accounting, which provide the required knowledge to follow the activities fluently as per professive knowledge. Also, a basic Excel knowledge is required.

Objectives

 Background:

 This module is a mandatory six-credit ECTS subject for the UAB Business Administration degree and Economics degree taught in the second semester of the third year.

 Objectives:

 The objective of this subject is to teach the financial statements of the firms: balance sheet, income statement, annual report, the changes in equity, and cash flows statements.

The teaching of analysis tools and techniques will allow the analysis of the financial statements to report the firms' past financial and economic situation (solvency and profitability). Additionally, to understand the company's future evolution and make decisions about the current situation. To develop critical thinking and to acquire professional skills.

The methodology consists of analysing companies' financial statements. Therefore, solid previous theoretical knowledge of the accounting financial statements is essential. It is a requirement to work constantly since this module is based on progressive knowledge.

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

TOPIC 1. FINANCIAL INFORMATION AND ANALYSIS OF FINANCIAL STATEMENTS

  1. Concept, usefulness and scope of financial statement analysis for business decision-making.
  2. Supply of business information.
  3. Annual accounts.
  4. Sources of business information.
  5. The role of qualitative information. Influence of risk on decision-making.
  6. Users of business information.
  7. Limitations of business information.

TOPIC 2. FINANCIAL STATEMENTS (I)

  1. The balance sheet.
  2. Structure and asset/liability categories. Items recognised in the balance sheet.
  3. Valuation of balance sheet items. The valuation issue.
  4. Analysis of the asset, liability and equity structure: percentages and rates of change.
  5. The income statement. Recognition of income and expenses.
  6. Structure and items recognised in the income statement.
  7. Types of income:
  8. Operating income, financial income, income before tax and net income.
  9. Gross income, EBIT and EBITDA.
  10. Analysis of margins, cost structure and income: percentages and rates of change.
  11. The notes to the financial statements.

TOPIC 3. FINANCIAL STATEMENTS (II)

  1. The Statement of Cash Flows.
  2. Concept, mandatory nature and usefulness for financial analysis.
  3. Classification of cash flows.
  4. Methods of preparation: direct and indirect.
  5. Preparation of the Statement of Cash Flows using the indirect method.
  6. Presentation according to the Spanish General Accounting Plan model.
  7. Interpretation of the Statement of Cash Flows.
  8. Relationship between profit or loss for the year and net cash from operating activities: earnings quality.
  9. Alternative indicators to cash and income: Free Cash Flow.
  10. The Statement of Changes in Equity:
  11. Concept and mandatory nature.
  12. Structure and presentation according to the Spanish General Accounting Plan model:
  13. The Statement of Total Changes in Equity.
  14. The Statement of Recognised Income and Expenses.
  15. Preparation and interpretation of the Statement of Changes in Equity: a first approach.
  16. The management report.
  17. The audit report. Structure of the report and types of opinion.
  18. Information from consolidated financial statements.

TOPIC 4. ANALYSIS OF SHORT-TERM LIQUIDITY AND SOLVENCY

  1. Concept of liquidity.
  2. Short-term financial positions and equilibrium.
  3. Working capital and its classification.
  4. The operating cycle: turnover ratios, average maturity periods and the cash conversion cycle.
  5. Operating financing needs.
  6. Analysis of liquidity using ratios.
  7. Analysis of liquidity scenarios for decision-making.

TOPIC 5. ANALYSIS OF LONG-TERM SOLVENCY

  1. Concept of long-term solvency.
  2. Long-term financial positions and equilibrium.
  3. Analysis of long-term solvency.
  4. Self-financing.
  5. Guarantee ratio.
  6. Debt and financial autonomy ratios.
  7. Ratios based on the Statement of Cash Flows.
  8. Analysis of solvency scenarios for decision-making.

TOPIC 6. ANALYSIS OF PROFITABILITY AND INCOME

  1. Return on assets (ROA).
  2. Return on equity (ROE).
  3. Components of the company’s profitability.
  4. Financial leverage.
  5. Analysis of profitability scenarios for decision-making.
  6. Market reference indicators.
  7. Net Financial Debt.
  8. Equity Value.
  9. Enterprise Value.
  10. Earnings per share.
  11. Pay-out and dividend per share.
  12. Price-earnings ratio (PER).
  13. Price-to-book ratio.
  14. Benchmarking.
  15. External comparables and sector average benchmarks.
  16. Arm’s length range and interquartile range of comparables.
  17. Use of comparables in business and financial analysis.


Learning activities and methodology

Title Hours ECTS Learning outcomes
Consultation Hours 8 0.32 1, 2, 3, 4, 5, 6
Independent study 78.5 3.14 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18
Lectures 32.5 1.3 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19
Assessment activities 8 0.32 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 22
Problem solving activities 17 0.68 14, 15, 16, 17, 18, 19, 20, 21

Lectures and Tutorials are presencial

Theoretical classes: teacher's presentations using supporting material.

Practical classes: analysis and discussion of real cases. Exercises resolution and practical cases to reinforce and apply the theoretical knowledge, working individually or in group, always under the teacher's direction.

Tutorship: doubts resolution, monitoring of the assigned work and the prepared cases. Autonomous student's work: readings related to the matter, studying and preparation of diagrams, preparation of cases and exercises.

Evaluation tests and monitoring: written evaluations of the acquired knowledge.

Advanced knowledge of use of excel and worksheets is required to be acquired progressively during the sessions. In this sense, the case studies must be prepared IN ADVANCE. During the sessions will not be time to review the formulation but in the relevant discussion to provide managerial recommendations.


Use of AI – Restricted Use: For this course, the use of Artificial Intelligence (AI) technologies is permitted exclusively for support tasks such as text correction or translations. The student must clearly identify which parts have been generated using this technology, specify the tools used, and include a critical reflection on how these have influenced the process and the final outcome of the activity. Lack of transparency in the use of AI in this assessed activity will be considered academic dishonesty and may result in partial or total penalties to the grade of the activity, or more severe 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
Case Study 10% 2 0.08 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22
Final Exam 50% 2 0.08 7, 8, 9, 10, 11, 12, 15, 16, 17, 18
Midterm exam 40% 2 0.08 7, 8, 9, 10, 11, 12, 15, 16

Assessment

  1. Submission of a group case study (10% of the final grade).
  2. Midterm exam covering theoretical and practical content from Topics 1 to 3 (40% of the final grade).
  3. Final exam covering theoretical and practical content from Topics 4 to 6 (50% of the final grade).


Additional information:

Students who obtain an overall grade equal to or higher than 5 points will pass the course.

Students who obtain an overall grade equal to or higher than 3.5 points and lower than 5 points may sit the resit exam. The course instructors will decide the format of this exam, which will be the same for all students. Students who sit the resit exam and pass it will obtain a maximum final course grade of 5 points.

Students who obtain an overall grade lower than 3.5 points may not sit the resit exam and must retake the course.

Students will be considered “Not assessable” when they have not completed any of the assessment activities.


This course does not offer the option for comprehensive evaluation


Irregularities in evaluation activities

In spite of other disciplinary measures deemed appropriate, and in accordance with current academic regulations, "in the case that the student makes any irregularity that could lead to a significant variation in the grade of an evaluation activity, it will be graded with a 0, regardless of the disciplinary process that can be instructed. In case of various irregularities occur in the evaluation of the same subject, the final grade of this subject will be 0". Section 11 of Article 266. Results of the evaluation. (UAB Academic Regulations).


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

    • Basic:

      • Subramanyam, K.R. (2013), \"Financial Statement Analysis\". Irwin Accounting

      Complementary:

      • Walker, J. (2009): Accounting in a nutshell. Edició 3rd ed. Electronic resource from “Biblioteca de Ciències Socials. UAB”.
      • Wild, J; Subramanyam, K.; Halsey, R. (2005): Financial Statement Analysis. 9ª ed. Ed. McGraw-Hill.
      • Wahlen, J. M., Baginski S. P., Bradshaw, M. (2010): Financial Reporting, Financial Statement Analysis and Valuation: A Strategic Perspective, ed. South-Western College Pub, 7th edition.

      Webs:

      • Instituto de Contabilidad y Auditoría de Cuentas (ICAC). http://www.icac.meh.es
      • Banco de España. http://www.bde.es
      • Banc Central Europeu. http://www.ecb.int
      • Borsa de Madrid. http://www.bolsamadrid.es
      • Comisión Nacional del Mercado de Valores. http://www.cnmv.es
      • Guía Empresarial de Esade. http://www.guiame.net
      • Consell General de Cambres de Catalunya. http://www.cambrescat.es
      • Informe Anual de l'Empresa Catalana. http://www.gencat.net/economia/progecon/ecocat/inform.htm
      • Registro de Economistas Auditores. http://www.rea.es
      • Registre Mercantil. http://www.registradores.org
      • Instituto Censores Jurados de Cuentas de España. http://www.icjce.es

Software

Advanced knowledge of use of excel and worksheets is required to be acquired progressively during the sessions. In this sense, the case studies must be prepared IN ADVANCE. During the sessions will not be time to review the fomulation but in the relevant discussion to provide managerial recommendations.

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 2 Spanish second semester morning-mixed
(PAUL) Classroom practices 2 Spanish second semester morning-mixed
(TE) Theory 4 English second semester morning-mixed
(PAUL) Classroom practices 4 English second semester morning-mixed
(TE) Theory 13 Spanish second semester morning-mixed
(PAUL) Classroom practices 13 Spanish second semester morning-mixed
(TE) Theory 52 Spanish second semester afternoon
(PAUL) Classroom practices 52 Spanish second semester afternoon
(TE) Theory 60 Catalan second semester morning-mixed
(PAUL) Classroom practices 60 Catalan second semester morning-mixed