FIN4801 Financial & Economic Analysis, Module Handbook | MUL

Module overview 

Aims 

This module aims to equip students with knowledge, skills, and analytical abilities in financial and economic analysis, providing a comprehensive foundation for strategic decision-making in complex business environments. The module focuses on both theoretical principles and practical applications, fostering a deep understanding of how financial and economic factors interplay and influence organisational dynamics.

Learning Outcomes 

Knowledge
On completion of this module, the successful student will be able to:

1.  analyse financial statements, in particular the statements of profit or loss, financial position and cash flows, and assess the bridge between accounting and corporate finance, investment decision-making, the management of costs and working capital;
2.  apply economic principles, supply/demand, marginal analysis and opportunity cost to areas of international economics, money, banking, trade, foreign investment and economic institutions;

Skills

On successful completion of this module, the student will be able to:
3.   evaluate the required accounting and finance data and conduct the necessary calculations to support decision-making;
4.  analyse the role of accounting and finance in an organisation and how they interact with other functions.

Assignment structure, format and details

Each student or group must select a company listed on Stock Exchange.

Title: ‘A Case Study on the <XYZ> Industry, and Performance of 
ABC Company’ 
Please replace <XYZ> to the industry chosen

The case study should cover but not be limited to the following aspects:

(1)  Introduction and background of the industry 
(2)    Introduction and background of the company within the industry
(3)    Analysis of qualitative information including chair’s statement, report of directors, auditor’s report, look & feel of the annual report, photos, graphs, tone of language, etc.
(4)    Computation of ratios in various groups including liquidity, profitability, solvency, activity, valuation, etc. (calculation should be done for both the years).
(5)    Comparative analysis of the financial performance of the company over  a 2 year period (using the above calculations and other literature).
(6)    Comparative analysis of the company vis-a-vis the industry  (using the above calculations and other literature).

Assessed learning outcome (s)

Knowledge
On completion of this module, the successful student will be able to:

1. analyse financial statements, in particular the statements of profit or loss, financial position and cash flows, and assess the bridge between accounting and corporate finance, investment decision-making, the management of costs and working capital;
2. apply economic principles, supply/demand, marginal analysis and opportunity cost to areas of international economics, money, banking, trade, foreign investment and economic institutions;

Skills

On successful completion of this module, the student will be able to:
3.    evaluate the required accounting and finance data and conduct the necessary calculations to support decision-making;
4.    analyse the role of accounting and finance in an organisation and how they interact with other functions.