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.
George O. May Professor of Financial Accounting; Chair of Accounting Division
Stephen Penman is the George O. May Professor in the Graduate School of Business, Columbia University. He is also co-director of the Center for Excellence in Accounting and Security Analysis at Columbia Business School.
Prior to his appointment at Columbia in 1999 he was the L.H. Penney Professor in...