Economic analysis in companies

obligatory courses

(in Polish)

Wymagania wstępne

Rachunkowość, Finanse, Decyzje w przedsiębiorstwie – kształtowanie rynku Wymagania formalne

podstawowa wiedza z zakresu rachunkowości i finansów

Założenia wstępne

Rachunkowość, Finanse, Decyzje w przedsiębiorstwie – kształtowanie rynku, Teoria przedsiębiorstwa

In a constantly changing environment, companies are looking for tools to increase economic efficiency of assets. Among the instruments used economic analysis is very important. The course aims at presenting significant methods and techniques of economic analysis of enterprises. In particular, during the course students will be presented with a theoretical basis, methods of assessment of financial statements, methodology of conducting ratio analysis and of assessing (a) liquidity of the company, (b) company's capital structure design, (c) assets, revenues, expenses and earnings, and (b) valuation of the capital market.

Individual issues will be discussed from the theoretical viewpoint and then practical examples will be shown.

During classes, students will learn about the following issues:

Class 1: The essence, nature and methods of economic analysis of the company - the role, objectives, process and types of economic analysis, data sources for economic analysis, economic analysis methods (general and specific, comparative and causal).

Class 2: The structure of financial statements - role, types, elements of financial statements, the design of the balance sheet, income statement, cash flow statement and statement of changes in equity.

Class 3: Preliminary analysis of financial statements - balance sheet analysis (the structure of assets and liabilities, the dynamics of assets and liabilities, relationships between groups of assets and liabilities), analysis of profit and loss account (income and expense structure, dynamics of the position income and expenses, the links between groups components of income and expenses, financial indicators describing the financial result of the unit), analysis of cash flow statement (revenue and expenditure structure of cash flows, the growth of revenue and expenditure flows, synthetic analysis of the balances, indicators describing the financial flows of the entity).

Class 4: An analysis of financial liquidity - liquidity and solvency, liquidity ratios, the analysis of the realization of assets, working capital analysis.

Class 5: An operating efficiency analysis - analysis of supply of the enterprise with materials, analysis of consumption of materials, analysis of inventory management, analysis of production (analysis of the implementation of production assortment plan, analysis of rhythmic production, analysis of production quality), indicators of operating efficiency.

Class 6: Profitability analysis - the analysis of profitability in absolute terms, the profitability analysis in relative terms (indicators of return on assets, return on sales, profitability ratios of equity), profitability ratios as a pyramidal system.

Class 7: Rating of companies on the capital market

Class 8: Debt analysis - the criteria for the selection of forms of financing, analysis of the level of debt, solvency analysis, leverage analysis, analysis of the viability of the continuing operations.

Class 9-14: Presentations of group reports

Class 15: Written examination

1. Bednarski L., Analiza finansowa w przedsiębiorstwie, PWE, 2007

2. Czekaj J., Dresler Z., Zarządzanie finansami przedsiębiorstw. Podstawy teorii, PWN, 1998

3. Grzenkowicz N., Kowalczyk J., Kusak A., Podgórski Z., Analiza ekonomiczna przedsiębiorstwa, WZ UW, 2007

4. Jerzemowska M. (red.), Analiza ekonomiczna w przedsiębiorstwie, PWE, 2006

5. Kopiński A., Analiza finansowa banku, PWE, 2008

6. Micherda B. (red.), Sprawozdania finansowe i ich analiza. Analiza finansowa, Stow. Księg. w Polsce, 2005

7. Pomykalska B., Pomykalski P., Analiza finansowa przedsiębiorstwa, PWN, 2007

After completing the course the student will:

• understand the mechanisms governing the enterprise

• be able to apply the methods and analytical techniques to economic analysis of entities

• be able to link the results of economic analysis to decision-making systems of enterprises and organizations

• be able to assess the company's activities, its performance and financial condition

• make synthetic analysis of the results of the company

• undertake general and indicative analysis of the balance sheet and profit and loss account

• conduct profitability analysis, sales analysis and cost analysis of their achievements and financial flows.

The student has knowledge of basic categories of accounts (balance sheet, profit and loss account, cash flow, account of changes in equity and notes to financial statements), which may have a significant impact on the information presented in the reports, and therefore decisions made by stakeholders on the basis of these reports. The student has knowledge of analysis of enterprises using indicators of profitability, efficiency, debt, market value and liquidity.

1. The student understands the mechanisms governing the enterprise.

2. The student is able to link the results of economic analysis to decision-making systems of enterprises and organizations.

3. The student has knowledge of analyzing companies using the indicator method.

4. The student knows the five groups of indicators of profitability, efficiency, debt, market value and liquidity.

5. The student has knowledge of Du Pont analysis and pyramidal relationships between individual indicators.

The student has the ability to independently conduct enterprise analysis and evaluate the company in terms of profitability, efficiency, debt, market value and liquidity.

1. The student is able to carry out an analysis based on financial reports using the ratio and Du Pont methods.

2. The student is able to interpret the results of preliminary analysis (amount, vertical and horizontal), and ratio analysis.

3. The student is able to provide basic recommendations to improve performance indicators.

The student is aware of the impact of policies and accounting rules on the information presented in the financial statements of companies. The student knows how to make decisions regarding the involvement of the investment in the company analyzed.

1. The student is aware of how the choice of policies and accounting rules affects the information presented in the financial statements of companies and understands how companies can influence their assessment.

2. The student is able to work in the institutions involved in the enterprise analysis and provide recommendations on investment in the analyzed companies.

S_W01, S_W02, S_W03, S_W04, S_U01, S_U02, S_U03, S_U04, S_K01

Class attendance is mandatory (two absences in a semester shall be allowed) and being active during classes is a further bonus.

During the semester, students are divided into groups in which thet will make the assessment of the condition of the selected company, using data contained in financial reports. Detailed finding shouls be prepared in a form of a report (20% final grade), which will be then presented in class (20% of final grade). Each group will also be responsible for preparing co-report of the presentation of another group (10% of final grade). At the end of the semester there will be a final assessment in written form examination (open-ended questions and tasks), during which each student will have to identify specific ways to diagnose and evaluate important issues for the company (50% of the final grade).