PRODUCTIVITY AND PROFITABILITY ASSESSMENT USING FINANCIAL STATEMENTS
Année du cours : 1 année(s)
Etablissement : IÉSEG School of Management
Langue : English
Formation(s) dans laquelle/lesquelles le cours apparait :
Période : S2
At the end of the course, the student should be able to:
Taking an empirical perspective, this course is focused on the analysis of firms performance by using the information included in the annual reports.
– Define, analyse and operate concepts in management as profitability, productivity, fixed capacity ocupation rate, prices index and outputs and inputs mix.
– Apply the afore-mentioned skills to analyse a real firm operating in the services sector and benchmark its performance with other competitor firms.
Fundamentals of finance.
Financial statement analysis.1.DEFINITION OF THE ECONOMIC AND FINANCIAL VARIABLES NEEDED TO APPLY THE ANALYSIS.
1.1 Normalised variables for the Balance Sheet. Derived variables and basic relations.
1.2 Normalised variable for the Profits and Loss account.
1.3 Comparison with the sectorial information. The BACH database for European economic sectors.
2.ASSESSMENT OF THE ECONOMIC PERFORMANCE: THE PROFITABILITY RATIOS
2.1 The profitability ratios: ROE, ROI and ROA.
2.2 Profitability ratios break down.
3. TEMPORAL ANALYSIS: HOW TO DETERMINE THE CHANGES.
3.1 Changes in absolute and in relative terms. The index numbers.
3.2 Rates of growth. in discrete and continuous time periods.
4.MULTIFACTOR PRODUCTIVITY AND PROFIT MARGINS
4.1 Meaning of productivity and empirical definitions.
4.2 Profit margin, output and input prices, output and input mix and productivity.
4.3 The accounting information and the productivity indices.
5. EXTENSIONS OF THE MULTIFACTOR PRODUCTIVITY INDEX
5.1 The fixed inputs and their capacity utilisation.
5.2 The variable inputs. Nominal and real productivity indices.
5.3 The use the profitability-margin-productivity model to negotiate future operations.
5.4 How to simulate prospective time periods.
