Financial Performance Analysis

In the curricular unit, interactive methodologies are used in order to articulate the theoretical-practical dimensions of the methodologies to
be deepened, encouraging participation, debate and individual and critical reflection on real cases.
The following teaching-learning (TM) methodologies will be used:
TM1 – Problem-Based Learning: real and/or simulated cases related to financial performance analysis, company evaluation or mergers and
acquisitions will be presented, and they must work in groups to solve problems, developing practical analysis and decision-making skills.
TM2 – Case Studies: analysis of cases of real or historical companies allowing students to understand the complexities of financial
evaluation and mergers and acquisitions processes. This method allows a practical approach, encouraging reflection and application of
theoretical concepts.
TM3 – Business Simulations: use of financial analysis software (such as Bloomberg) or Power BI to carry out financial simulations, helping
to simulate the financial analysis of real companies, making learning more practical and aligned with market demands. Thus, students can
understand how to make decisions in real time in a controlled environment, focusing on risk analysis and economic-financial balance.
TM4 – Group Work: preparing group work aims to develop collaborative work skills.
TM5 – Classroom Debates and Discussions: Propose debates on topics such as economic risks and the importance of capital structure in
different market scenarios that can stimulate critical reflection and in-depth understanding of concepts.
TM6 – Finally, students’ autonomous work will be encouraged (for consolidation and deepening), preparation and/or continuation of the
work of face-to-face sessions and tutorial monitoring (to support learning).

Learning objectives (LO):
LO1. Understand the importance of analysing financial performance;
LO2. Evaluate the analysis of economic and financial balance and risk;
LO3. Analyse capital structures;
LO4. Evaluate companies and businesses;
LO5. Understand the mechanisms of M&A.
Competences to be developed (C):
C1. Interpreting and analysing financial indicators, using financial analysis tools and methods to make informed decisions (LO1);
C2. Identify, assess and manage economic and financial risk, guaranteeing the company’s stability and solvency (LO2);
C3. Analyse sources of capital and their combination, assessing costs, benefits and impacts on the risk and return of companies (LO3);
C4. Evaluate the value of companies for various purposes, such as M&A or strategic decisions, using different valuation methods (LO4);
C5. Analysing financial, strategic and operational factors in M&A, including due diligence and synergy assessment

P1. INTRODUCTION
1.1 Analysis script
1.2 Financial balance
1.3 Economic-financial indicators
1.4 Economic and financial risk
1.5 Scoring models
P2. CAPITAL STRUCTURE
2.1 Types of capital cost
2.2 Sources of financing
2.3 Capital structure theories
2.4 Optimal capital structure
2.5 Debt: advantages and disadvantages
P3. COMPANY AND BUSINESS EVALUATION
3.1 Assessment approaches
3.2 Comparative assessment with the market
3.3 Evaluation using the income method
3.4 Real Options
P4. STRATEGY, CAPITAL RESTRUCTURING AND VALUE
4.1 Strategic rationale for Mergers and Acquisitions
4.2 Synergies and value creation
4.3 Development of an acquisition process
4.4 Restructuring.

NAO