Student guide Faculty of Economics A.Y. 2010/11

Balance Sheet Analysis
Aim of the course
The learning objectives are:
1. To illustrate the content and characteristics of balance sheet analysis.
2. To highlight the principal links between business decisions and their economic-financial implications.
3. To develop the ability to evaluate the economic, financial and assets situation of a company.
4. To introduce the principal instruments and some of the methods for the economic appraisal of strategic alternatives, through use of budget forecasts.
1. The system of balance sheet information and analysis
2. Balance sheet reclassification
3. Balance sheet analysis by indicators and flows
4. The "four pole" analysis model
5. Links between profitability and solidity of assets
6. Links between profitability and the rate of sustainable growth
7. Analysis of competition through comparative balance sheet analysis
8. Sensitivity analysis and operating leverage
9. Accounting model and value model for evaluation of strategic alternatives
10. Management matrices of a financial nature

The course will comprise theoretical lessons and discussions of business case studies.
For students who attend lectures there will be a written examination on the material covered in class; the final result will also take into account students' participation in the discussions of case studies.
Students who do not attend lectures will have to first pass a written examination and then sit an oral exam.
Reading list
For students who attend lectures, the teaching and study materials will consist of a set of lecture notes published by Guerini:
- Balance sheet analysis readings and case studies.

Students who do not attend lectures will be required to prepare both Balance sheet analysis readings and case studies (readings only) and the following text:
Brusa L., Guelfi S., Zamprogna L., Finanza d'impresa, Etas Libri, Milano, 2001.