Financial Analysis
What
An introductory module used in New Venture Finance and a reference module for topics in new venture development.
Learning objectives
After completing this module you should be able to:
Demonstrate how to apply vertical, horizontal, and ratio analyses to financial statements in a spreadsheet
Identify and calculate appropirate ratio measures to apply to a startup venture's pro forma financials
Demonstrate how to deal with the "snapshot versus accrual" aspects of financial statements when calculating ratios
Instructions
Watch the assigned videos and presentations;
Read the assigned readings;
Complete the practice quiz or other assigned practice activity
Complete the assessment;
Complete the "Mark as Complete" checklist.
View
Financial Analysis.mp4Used in this lecture: Ratio analysis for restaurants (google sheets)
Same lecture hosted on YouTube
Financial Analysis Lecture
I introduce and discuss the three types of analyses of financial statements: vertical, horizontal, and ratio. I elaborate on the types of ratio analyses (liquidity, activity, leverage, profitability, and market) and how they can be used to create credible pro forma financial statements.
I end the lecture with an overview of the analyses of four companies from the same industry: restaurants (Panera, McDonald's, Ruby Tuesday, and Chipotle Mexican Grill). Looking at the liquidity, activity, and profitability ratios, you'll be able to see how differences in business models among these four restaurants affect the comparative ratios within categories of analysis.
Practice
Assessment - Graded Activity - IN CLASS
Here's the assessment activity for FALL and SPRING 2023 (in conjunction with Autoshop)
Specialty Retail Toy Company comparisons
You are going to evaluate some financial analyses of the specialty retail toy industry. You’ll look at financial ratios for Autoshop, Build-A-Bear Workshop, and Vermont Teddy Bear Company. This google sheet has the income statements, balance sheets, and select ratios for these companies. Open it and refer to it as you answer the following questions - I do not need you to send me the sheet file, just this doc file posted the left (on big screen) or above (on small screen) in .docx or .pdf format per the instructions.
Do you want to share a question or comment about module 1?
Mark as Complete
After you have completed the Videos, readings, practice quiz, and assessment, please return to your course homepage for the next module
New Venture Finance, MGT 481, Fall 2020
New Venture Development, MGT X82, Fall 2020
Happy Joy Fun Time
FINANCIAL MODELING AND FINANCIAL ANALYSIS EXPLAINED IN A SHORT STORY