Ateneo - UPO

The course covers the topic of measuring and analyzing business performance, with the goal of enabling even “non-specialists” in the field to understand the various dimensions of business performance and identify its determining factors. The analysis of business performance is organized according to the dimensions of profitability, assets, and financial position, considering both the company as a whole and relevant segments (e.g., product lines, brands, types of services, customer categories, etc.). With regard to business performance as a whole, the methodology used is financial statement analysis, specifically techniques for reclassifying the income statement and balance sheet and calculating profitability, solvency, and liquidity ratios.
With regard to segment-level performance analysis, segment analysis is specifically presented, which allows the company’s income statement to be broken down in order to highlight the contribution of different segments to the operating profit from core operations. To this end, the income statement is presented using the direct costing method. The methodologies and techniques presented enable an understanding not only of the dimensions of corporate performance but also of the impacts of corporate decisions on economic, balance sheet, and financial results.

SONGINI L., Come impostare un sistema di programmazione e controllo (lettura)
Arcari A. M. Programmazione e controllo, McGraw-Hill, 2023, IV edizione, cap. 7
Teaching material comprises also slides and case studies.

After taking the course, the participant will be able to:
- understand relevant dimensions of business performance
- critically analyze business performance
- understand the impact of managerial decisions on the company's performance
- read and understand the performance of segments of the company (products, services, customers, markets, etc.)
- understand and compare the performance of competing firms, customers, and suppliers.

None

Lectures.
Analysis and discussion of business cases in small groups and plenary.

Students with physical disabilities, Learning Disabilities or Specific Education Needs can request specific services and tools via the Staff Sviluppo e Coordinamento Carriere e Servizi alle Studentesse e agli Studenti, consulting the University web site:
https://uniupo.it/it/servizi/servizi-studentidisabilie-dsa
Students with disabilites, learning disabilites or special educaton needs, once they have contacted the University Staff, can refer to the tutor in charge of the course to define the examination modalities.

Written exam: open questions and multiple choice questions

The topics covered in the course are as follows:
A) Key firm performance:
1. The income, asset and financial dimensions
2. The financial statements: The income statement and the balance sheet
B) The reclassification of financial statements.
1. The reclassification of the income statement: The income statement to revenue and cost of sales
3. The reclassification of the balance sheet: The financial criterion
C) The financial statement analysis by ratios.
1. Solidity
2. Liquidity
3. Profitability
D) The segment analysis
1. The income statement by segment and to revenue and contribution margin
2. Specific and common costs; variable and fixed costs

At the end of the course, students will be able to:
1. read and interpret a financial statement
2. understand the relevant dimensions of corporate performance
3. critically analyse corporate performance
4. understand the impact of managerial decisions on corporate performance
5. read and understand the performance of segments of the company
6. understand and compare the performance of competing firms, customers, and suppliers.