Curricular Unit:Code:
Financial Management I1175GF1
2UndergraduateBusiness Sciences8 ects
Learning Period:Language of Instruction:Total Hours:
Winter SemesterPortuguese/English104
Learning Outcomes of the Curricular Unit:
Knowledge and skills:
- Explain the basic concepts, instruments, information sources and techniques of financial analysis;
- Calculate and explain financial analysis indicators;
- Calculate and explain rates of return;
- Calculate and explain financial leverage;
- Decompose the different drivers of return on equity;
- Develop a diagnostic on the economic and financial situation of a company.
- Ability to elaborate a diagnosis on the economic and financial situation of a company;
- Ability to solve problems;
- Ability to summarize and communicate the results, orally and in management reports;
- Ability to work independently.
1 General concepts: importance of corporate finance in corporate management, accounting information and its limitations, characteristics of accounting information required by the Portuguese accounting plan, financial analysis’ tools and techniques, turning accounting statements into financial analysis data according to the Portuguese accounting plan.
2 Short and medium term financial equilibrium analysis using Portuguese accounting plan statements: long and short run needs of working capital, analysis of financial indicators, financial balance.
3 Profitability analysis: types of profitability, profitability indicators, financial leverage, integrated profitability analysis (DuPont).
Demonstration of the Syllabus Coherence with the Curricular Unit's Objectives:
1 Contextualize financial management in the functions of a company, define its scope, recognizing accounting as the main source of information and its limitations, make the major adjustments to the accounting statements for financial analysis purposes, recognize the importance of extra-accounting information and build mutation values maps of the Balance Sheet and Profit and Loss Statement over several years.
2 Understand the scope of the minimum financial balance rule, calculate the different dimensions of working capital, understand their meaning and ways to strengthen it, calculate ratios or indicators (liquidity, activity and autonomy) and recognize their limitations and ascertain on the financial stability of a company and discuss the reasons that lead to its imbalance.
3 Calculate and interpret the different measures of profitability, prepare a DuPont analysis and identify the contributions of the operational, financial and fiscal areas for return on equity.
Teaching Methodologies (Including Evaluation):
The teaching methodology is explanatory and participatory in nature and includes the presentation of concepts, accompanied by practical examples, and the resolution and analysis of case studies. The evaluation of skills will be measured based on the realization of 2 intermediate assessment tests (with a weight of 50% - chap. 1 and 2 - and 30% - chap. 2.3 until chap. 3.4), and homework (20%).
Demonstration of the Coherence between the Teaching Methodologies and the Learning Outcomes:
This methodology allows the achievement of the specific objectives set in each point and that the students gain as general competences: given the essentially practical nature of the topics covered in the course all of them are presented and explained with the resolution of several of case studies.
Atrill, P. and McLaney, E. (2019). Financial Accounting for Decision Makers. Pearson Education.
Fernandes, C., Peguinho, C., Vieira, E. e Neiva, J. (2022). Análise Financeira – Teoria e Prática, 56/e. Lisboa, Edições Sílabo.
Fernandes, C., Peguinho, C., Vieira, E. e Neiva, J. (2018). Análise Financeira – Casos práticos, 2/e. Lisboa, Edições Sílabo.
Lopes, I. T. (2017). Contabilidade Financeira – Preparação das Demonstrações Financeiras: sua divulgação e análise, 2/e. Lisboa, Escolar Editora.
Mota, A., Barroso, C., Nunes, J., Oliveira L., Ferreira, M. e Inácio, P. (2020). Finanças da Empresa – Teoria e Prática, 6/e revista e aumentada. Lisboa: Edições Sílabo.
Nabais, C. A. F. e Nabais, F. C. (2011). Prática Financeira I – Análise Económica e Financeira. 6/e Actualizada e Aumentada. Lisboa, Lidel.
Neves, J. C. (2012). Análise e Relato Financeiro – Uma visão Integrada de Gestão. Lisboa, Texto Editora.
Vários autores. Casos práticos de “Análise Financeira” disponíveis na B On.
Lecturer (* Responsible):
Sandra Bernardo (