An introduction to the core quantitative methods of data analysis

This module will introduce you to some of the core quantitative methods of analysing financial statements data in relation to supporting business decisions.

There is an emphasis on the analysis of financial information for assessing the fundamental value of traded securities in the global market, and for making investment decisions. 

You’ll explore how the application of quantitative methods can improve the quality of business decisions – enabling decisions that are grounded by data analysis rather than gut feelings or preferences.

You’ll also learn to read between the lines of financial statements – how to identify and evaluate firms’ key value drivers, forecast financial information, design valuation techniques based on forecasts, issue an equity investment recommendation, and assess whether companies are appropriately priced by the market.

The topics you’ll cover in this module include:

  • Balance sheet – composition and analysis
  • Income statement – composition and analysis
  • Statements of shareholders’ equity and cash flow
  • Profitability analysis
  • P/B ratio and residual earnings valuation
  • Forecasting financial statements