Module 2: Financial Analysis and Decision-Making

Introduction: Module 2 delves into financial analysis and decision-making tools that are crucial for effective financial management. This module covers financial ratios, forecasting techniques, and valuation methods that help in evaluating financial performance and making informed decisions. Students will learn to analyze liquidity, profitability, and solvency through financial ratios and apply forecasting methods for budgeting and financial planning. The module also explores investment principles and risk management strategies to build and manage effective investment portfolios.

Learning Outcomes:

1. Evaluate Financial Performance: Use financial ratios to analyze a company’s liquidity, profitability, and solvency.
2. Forecast Financial Outcomes: Apply forecasting techniques to create accurate financial projections and budgets.
3. Manage Investments and Risks: Understand investment principles and risk management strategies to make informed investment decisions and manage financial risks.