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2026/2027  KAN-CFIAO1004U  Financial statement Analysis

English Title
Financial statement Analysis

Course information
Language English
Course ECTS 7.5 ECTS
Type Mandatory (also offered as elective)
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for Finance, Economics & Mathematics
Programme MSc in Economics and Business Administration - Finance and Investments (FIN)
Course coordinator
  • Ole Vagn Sørensen - Department of Accounting (AA)
Main academic disciplines
  • Accounting
Teaching methods
  • Blended learning
Last updated on 09-09-2026

Relevant links
Learning objectives
The aim of the course is to enable students to analyze a firm’s profitability, growth and risks, calculate and interpret financial ratios that describe a firm’s financial situation and demonstrate the ability to value firms using different valuation techniques. Finally, students should understand that the quality of accounting information may limit the quality of financial analyses and decision making. Upon completion of the course the student should therefore be able to:
  • read and understand a financial statements
  • conduct a profitability analysis using financial ratios
  • conduct a growth analysis using financial ratios
  • prepare pro forma statements for forecasting
  • estimate firm values
  • understand the concept of accounting quality
  • understand the misuse of accounting flexibility and possible adjustments
Examination
Financial Statement Analysis:
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Winter
Aids Limited aids, see the list below:
The student is allowed to bring
  • Any calculator
  • In Paper format: Books (including translation dictionaries), compendiums and notes
The student will have access to
  • Canvas
  • Advanced IT application package
Make-up exam/re-exam
Same examination form as the ordinary exam
The number of registered candidates for the make-up examination/re-take examination may warrant that it most appropriately be held as an oral examination. The programme office will inform the students if the make-up examination/re-take examination instead is held as an oral examination including a second examiner or external examiner.
Description of the exam procedure

Use of Generative AI (GenAI) tools or apps is not permitted for this written sit-in exam
Course content, structure and pedagogical approach

The first part of the course focuses on refreshing students’ knowledge of basic financial accounting and financial statements including the income statement, balance sheet, statement of changes in owners’ equity and cash flow statement. The first part also addresses the conceptual differences between accrual and cash flow based accounting. After completing the first part the student should be able to read and understand financial statements.
 
The second part of this course focuses on approaches to measure profitability. Key financial ratios like return on invested capital (ROIC) and Economic Value Added (EVA) are defined and analysed. After completing the second part the student should be able to conduct a ratio analysis measuring the profitability of a firm. Furthermore, the student should be able to compare different firms’ profitability.
 
The third part of this course focuses on different ways to measure growth and understand that growth is not necessarily beneficial. After completing the third part, students should be able to analyse growth and understand which kind of growth is beneficial for company value.
 

The fourth part of the course focuses on forecasting. It is about how to technically develop the pro forma statements. After completing this part of the course, students should be able to develop pro forma statements based on forecasting assumptions.


The fifth part of the course focuses on firm valuation. Different valuation approaches are introduced and the strengths and weaknesses of each approach are discussed. After completing the fifth and this part, students should be able to estimate the value of a firm.

 

In the end, we will highlight the importance of accounting information quality, accounting flexibility, misuse of accounting flexibiliy, and possible adjustments to improve the financial analysis. 
Research-based teaching
CBS’ programmes and teaching are research-based. The following types of research-based knowledge and research-like activities are included in this course:
Research-based knowledge
  • Classic and basic theory
  • Teacher’s own research
  • Methodology
  • Models
Research-like activities
  • Analysis
  • Discussion, critical reflection, modelling
Description of the teaching methods
Lectures with exercises and workshops.
Feedback during the teaching period
Feedback will be provided during the exercises sessions. Exercise sessions entail feedback to students who have prepared solutions at home.
Students can check the instructor's solution and the explanations. During the exercise sessions, students are encouraged to participation into the discussion, and feedback is continuously provided by the instructor and by the classmates.
Student workload
Lectures 33 hours
Preparation for lectures 66 hours
Exercise classes 28 hours
Preparation for exercise classes 70 hours
Exam 4 hours
Final preparation for exam 19 hours
Expected literature

(1) Thomas Plenborg and Finn Kinserdal, Financial Statement Analysis, 3rd edition, Fagbokforlaget, 2025, ISBN: 9788245060553

 

(2) Thomas Plenborg and Finn Kinserdal, Financial Statement Analysis, 2nd edition, Fagbokforlaget, 2020, ISBN: 9788245034240

 

(3) Christian Petersen, Thomas Plenborg, and Finn Kinserdal, Financial Statement Analysis, 1st edition, Fagbokforlaget, 2017, ISBN: 9788245021028
Last updated on 09-09-2026