This course helps students understand how firms communicate through financial statements. They learn how to:
- use financial statement analysis as an integral part of the strategic analysis of firms;
- interpret financial statements, analyze cash flows, make judgments about earnings quality and uncover hidden assets and liabilities;
- apply financial statement analysis prospectively to forecast and value firms by applying modern accounting-based technologies.
Students are also exposed to the latest academic research on fundamental analysis. The course has a very practical emphasis, with a wide variety of cases, in-class exercises and a group project, all involving comprehensive analyses of publicly traded companies.