Gulf University for Science and Technology
BA 5401 Financial Reporting and Analysis
Fall Semester 2007
Dr. David Boyd, CPA, CMA, CFM, CFE, CrFA
Section 1&51 Sun/Tu/Th 14:00-15:00
GUST # 5534
Sun/Tu/Th 13:- 0014:00
Or by appointment
Course Objectives and Goals:
Financial statement analysis is one important step in business analysis.
Business analysis is the process of evaluating a company’s economic
prospects and risks. This includes analyzing a company’s business
environment, its strategies, and its financial position and performance.
Business analysis is useful in a wide range of business decisions such
as investing in equity or debt securities, extending credit through short
or long term loans, valuing a business in an initial public offering (IPO),
and evaluating restructurings including mergers, acquisitions, and
divestitures. Financial statement analysis is the application of analytical
tools and techniques to general-purpose financial statements and
related data to derive estimates and inferences useful in business
analysis. Financial statement analysis reduces one’s reliance on
hunches, guesses, and intuition for business decisions. This course
describes business analysis and the role of financial statement analysis.
It also introduces financial statements and explains how they reflect
underlying business activities. Several tools and techniques of financial
statement analysis are also introduced.
1 Overview of Financial Statement Analysis
2 Financial Reporting and Analysis
3 Analyzing Financing Activities
4 Analyzing Investing Activities
6 Analyzing Operating Activities
7 Cash Flow Analysis
8 Return on Invested Capital and Profitability Analysis
9 Prospective Analysis
10 Credit Analysis
11 Equity Analysis and Valuation
• John J. Wild, K.R. Subramanyam, and R. F. Halsey, Financial
Statement Analysis, Ninth Edition (McGraw-Hill International
In accordance with GUST policy, the Registrar’s office will be notified if a
student has more than three unexcused absences. In my class all absences
are unexcused unless I am notified prior to the start of class and then the
student must present a valid written excuse (in English) on his/her return to
class. Six absences will result in a “F” withdrawal from the class. There are
no make-up projects. A project turned in late will be reduced in value by 10
points for each day (or part of a day) that it is late. Each project is due at the
beginning of the class it is to be collected.
Students are expected to:
• Bring their assigned textbook and notebook;
• Be on time to class;
• TURN OFF THEIR MOBILES BEFORE ENTERING THE
• Remain quiet during the class; and
• Remain seated for the entire class.
If you are unable to comply with these expectations, you will be asked to
• Cases: Three projects (cases) related to your assigned company will
be given. They will be worth 20% each, making a total of 60% of your
final grade. Cases will be related to topics we are covering in the text.
Each student should hand in his/her own report on his/her assigned
company and show all the work supporting his/her answers. You may
be asked to present the report in class so prepare well and be
knowledgeable of the work you have prepared.
• Final Project: each student should choose a Company listed on the
New York Stock Exchange to be his/her company to work with on the
projects. The student will be expected to apply assigned projects for
their company. A written report should be handed in one week
prior to the end of the semester and a formal presentation will be
given during the final exam period. The written presentation and
the oral presentation will be worth 40% of your final grade.
Any student found to have committed Plagiarism will receive an F for the
course. Plagiarism is a serious offense and will be dealt with severely. Works
created by another author may be appropriate but proper credit must be given
Grades will follow University policy:
A 95-100 A- 90-94
B+ 87-89 B 83-86
B- 80-82 C+ 77-79
C 73-76 C- 70-72
D 60-69 F less than 60
How To Do well in BA 5401
1. This is your final year. You will graduate soon. Think as a
professional. Learn for living - not for a grade!
2. Read the chapters carefully: take notes, study the examples, and learn
the vocabulary before the chapter is discussed in class. Do all study
guide assignments and utilize the study aids on the website, especially
3. Attending class dramatically increases your chances of
understanding the material. Do not depend on other’s notes- they do not
reflect what you need to know.
4. Take good notes in class. Do not depend on handouts as your source
of documenting the material presented in class.
5. The general rule is 3 hours of studying per 1 hour of lecture. This means
you should be studying 9 hours a week for your Accounting course.
6. Once you fall behind it is very difficult to catch up. Accounting is a
discipline that builds as the course develops. A concept presented in the
first chapter may be utilized in the last chapter. Stay current!
7. If you don’t understand something, ASK! Utilize office hours if your
understanding is incomplete after the class lecture.