Corporate Financial Analysis

2432 WordsApr 20, 201310 Pages
Overview of the course O i f th Understanding the company Financial statements Paperless, sustainable, eco‐friendly  On UTS online:  all the readings are available in pdf format  all the lecture slides are available in pdf or pptx format  This saves you approx $140 AND you can use it on your iPad/reader/phone/laptop/PC (or print it out)?  Does it make you more efficient? Lecture 1 - Intro 2 How to do well in the class:  Ensure you can do the “DO LIST” each week  The tutorial questions will be introduced during the lecture at the point where the material is introduced  Try the tutorial questions before the tutorial y q  It is YOUR RESPONSIBILITY to try the question first and come to the tutorial and be…show more content…
High business risk.  Pharmaceutical company  Lecture 1 - Intro 15 5 Common size  What is specific to each industry?  Electric Utility  Capital intensive, often return determined by government body since monopoly position. There has been a slow de body since monopoly position. There has been a slow de‐ regulation of the market reducing profit markets on these companies. Financing to loan out is provided by deposits, and need to be liquid therefore high level in cash. Profit margin small on loans. High profit on fee based services.  Commercial Bank  Lecture 1 - Intro 16 5 Steps of Financial Statement Analysis 1. Identify economic characteristics of industry An overview of the P/L and B/S Common size statements Tools of analyising industry characteristics T l f l i i i d h i i ‐ Value chain analysis ‐ Porters analysis ‐ Economic attributes Lecture 1 - Intro 17 Tools for Examining Industry Economics Value Chain Analysis   Sequence or chain of events in creation, manufacture and distribution of product/service Example: Pharmaceutical company E l Ph i l 1. 2. 3. 4. 5. Research to discover drug Approval of drug by government regulators Manufacture of drug Creation of demand for drug Distribution to consumers Lecture 1 - Intro 18 6 Tools for Examining Industry Economics Porter’s Five Forces 1. 2. 3. 4. 5. Buyer Power Supplier Power Rivalry Among Existing Firms
Open Document