Financial Statement Analysis

Module code: EC7095

Module co-ordinator: Mr Jim O'Hare

Financial statements are produced by businesses so that a wide range of users - including banks, suppliers, customers, Government and employees - can make economic decisions about the financial performance and position of that business.

The analysis used is often referred to as 'ratio analysis' and is usually divided into four sections: profitability, liquidity (solvency), gearing (leverage), and shareholder interests. It is not only accountants who have to use this type of financial information; in recent years changes have been made to the way this information is presented to make it easier for non-specialists to perform meaningful analysis.

Topics covered

  • Financial reporting system
  • The components of, and relationships between, financial statements
  • Evaluating the relevance of information contained in financial statements
  • Financial ratios
  • Ethics and professional standards for financial analysts


  • 10 two-hour lectures
  • 9 one-hour tutorials


  • Coursework (30%)
  • Exam, 2 hours (70%)