Chapter 8
Analysis of Financial Statements

Chapter Learning Objectives

The learning objectives of the chapter are:

• Explaining to participants the importance of analysing financial statements.
• Guide participants on how to conduct horizontal analysis.
• Outline how to calculate and interpret the ratio analysis.

Learning Outcome

At the end of chapter the participants will be able to analyse and interpret the financial statement of the enterprise.

Learning Activities

Individual Activities

• An assignment will be given, requiring the participant to conduct the Horizontal analysis.

Group Activities

Participants will be given financial statements of a real company and assess the performance over a number of years.

Sessions and Time Allocated

14. Horizontal analysis: 1 hour
15. Ratio analysis: 2 hours
16. Limitation of ratio analysis: 1 hour