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A.U.E.B.

A.U.E.B.

Athens University of Economics and Business, Greece

S.U.S.K.O.

S.U.S.K.O.

Sofia University "St. Kliment Ohridski", Bulgaria

A.U.E.B.

A.U.E.B.

Athens University of Economics and Business, Greece

A.U.E.B.

A.U.E.B.

Athens University of Economics and Business

U.W.

U.W.

University of Warsaw, Poland

U.W.

U.W.

University of Warsaw, Poland

S.U.S.K.O.

S.U.S.K.O.

Sofia University "St. Kliment Ohridski", Bulgaria

T.U.K.E.

T.U.K.E.

Technical University of Kosice, Slovakia

Analysis of Financial Statements – Business Valuation

The main goal of Module 6 is to show how the accounting information (combined with other sources of information) can be used for the evaluation of the financial performance and condition of a company.

The basic analytical tools for this purpose are emphasized:

  • Horizontal analysis
  • Vertical analysis
  • Ratio analysis

The application of each tool is illustrated using the financial statements of two companies for the years 2009 and 2008.

 Furthermore, Module 6 shows how to prepare the Statement of Cash Flows using the direct and indirect methods.

 

When completing this module the user will be able to:

  • Apply the horizontal and vertical analyses and explain the results.
  • Compute the most important financial ratios in order to measure the liquidity, the profitability, the solvency of a company.
  • Use the ratios in order to make the necessary investment decisions.
  • Understand the importance of the Statement of Cash Flows.
  • Prepare Statement of Cash Flows using the direct and indirect method.

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