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Week 7a [11]: Investor ratios
Lecture material The lecture notes for this session are here. There is an online presentation on investor ratios available at ecourse.co.uk/eps. This will run on your computer or ipad. You may need to download a free player app to use on the Apple ipad. There is also a worksheet showing worked examples for calculating earnings […]
Week 7b [CORE]: Interpretation of financial statements
There is a booklet I wrote many years ago as a short but clear introduction to the use of financial ratios in the interpretation of financial statements. It is still useful* today although it is a bit dated in some respects. It can be downloaded from here. *This resource does not cover the interpretation of cash […]
Week 6 [10]: Financial structure – Capital and Income Gearing
This week we will look at the financial structure of a company. We’ll look at how companies are financed, and the relationship between debt and equity, as well as the nature of long and short term finance. We’ll use the financial statements of the Hunting plc to support the session. You can download the group’s […]
Week 5 [9] [CORE]: Working capital management
Introduction Liquidity is a huge issue – especially now. In many cases we don’t really think about it – until it becomes an issue. It usually becomes an issue when liquidity is too low. And when it becomes an issue it can escalate alarmingly and cause considerable damage and distress. Liquidity issues can affect countries. […]
Week 4 [7] [CORE]: Profitability
Profitability – learning notes The learning notes can be found here. Profit In the previous session we saw that liquidity needs to be carefully managed, especially in times of economic depression/recession, if a business is to survive. The current pandemic provides a vivid example of this. However, in order to grow and provide a return […]
Week 3b [4/24] [CORE]: Liquidity
Introduction Having looked (albeit briefly!) at the format and content of the main financial statements we’ll now start looking at the usefulness of the statements, in particular to investors. This week we will look at: a) how accounting data is made up of two components – an economic event and a measurement b) how an […]
Week 3a [4/24] PRIVATE STUDY: Getting financial information: an introduction to published financial statements
Company Reports – Case Study TESCO Tesco Annual Report 2024 You can access and download the latest corporate report of Tesco from https://www.tescoplc.com/investors/reports-results-and-presentations/annual-report-2024 The lecture/self study notes are at http://www.ecourse.co.uk/media/tesco/presentation.pdf Course video: Getting information about a company from Companies House: Tesco plc [CORE] NB: You may have to use this link: https://www.gov.uk/government/organisations/companies-house Course video: Getting […]
Week 02a [5] [CORE]: The Accounting Equation & the Elements of Accounting
The Accounting Equation The statement of financial position [i.e. balance sheet] reflects what is widely known as ‘the accounting equation‘. The accounting equation states that, for an entity, its total assets of a business minus its total liabilities will equal its equity or capital i.e. A – L = E. This concept is essentially quite […]
Week 2b [5] [CORE]: Double Entry, the Primary Financial Statements and Financial Decisions
Luca Pacioli, a Venetian mathematician was the first to describe in print the double entry system used by Venetian merchants to record transactions. Click picture for more information. Recording transations – double entry and the accounting system Last week we looked at business transactions and how they affected the assets, liabilities and capital of a […]
Week 1/ [4] [CORE]: Business transactions
Overview of material to be covered in Week One This week we will start looking at the financial statements of a business, this week – transactions and the financial position of a business Business transactions As an introduction to financial statements we’ll start by looking at how some typical transactions entered into when setting up […]