B Financial Performance Indicators

This module explores key measures used in Economics and Finance, outlining their respective data sources. It covers financial performance indicators of individual firms, necessitating a thorough understanding of business accounting and its key metrics. Building on the tools introduced in the first module, this section provides guidance on presenting and interpreting financial and economic data using R.

B.1 Overview

Outlined below are the chapters contained in this module:

  • Chapter 7: “Economic Data Sources” explores various indicators that provide insights into the health and direction of economies and markets, and introduces key data providers.
  • Chapter 8: “Business Accounting” discusses how accounting is a systematic method of recording, analyzing, and summarizing financial transactions. The outcome of accounting is a comprehensive snapshot of a company’s financial health, communicated through financial statements.
  • Chapter 9: “Financial Performance Indicators” discusses key numbers that provide a comprehensive view of a company’s financial health. These indicators are based on the three major financial statements: the balance sheet, income statement, and cash flow statement.

Additionally, the following DataCamp courses supplement the chapters mentioned above:

The module culminates in the creation of a data report:

  • Data Report on Financial Performance Indicators: This tests your ability to analyze financial performance indicators, focusing on metrics derived from the balance sheet, income statement, and cash flow statement. You will evaluate a company’s financial health and compare its performance to industry benchmarks.

B.2 Learning Objectives

Upon completing this module, students will be able to:

  1. Comprehend the fundamental concepts of business accounting and the structure of financial statements.
  2. Understand and identify key financial performance indicators and accounting metrics.
  3. Locate and interpret data sources relevant to financial and accounting measures.
  4. Utilize R to effectively visualize financial performance and accounting data.
  5. Draw insights from these visualizations and understand their implications.

B.3 Learning Activities & Assessments

Throughout this module, you’ll engage in the following activities:

  • Textbook Engagement: Read the textbook chapters 7 to 9 and reproduce the content provided. Input the code from the chapters into RStudio and verify that your results match the chapter outputs.

  • DataCamp Training: Work through the Introduction to the Tidyverse and Data Manipulation with dplyr courses on DataCamp. While progressing through the courses, keep an R script handy and apply the learned functions to any of the datasets introduced in this module. This preserves the new functions of the course and potentially offers new insights from the chosen dataset.

  • Data Report Creation: To consolidate your learning, craft a Data Report on Financial Performance Indicators using R Markdown. Your report should clearly display data, provide meaningful analyses, and embody the module’s content.

Your assessment will be based on:

  • DataCamp Course Completion: Finish the designated DataCamp courses for this module. Your grade is based on course completion; thus, you receive full credit by completing all chapters and obtaining a minimum of 75% XPs (experience points) by the deadline. Hence, while the Take Hint and Show Answer options reduce your XPs, they won’t affect your module grade if you stay above the 75% threshold.

  • Data Report Evaluation: The quality of the data report is central to module assessment. It should be professional, suitable for clients, and reflect the module’s content. Ensure you adhere to the data report instructions.

For further guidance on maximizing your textbook and DataCamp experience, consult the Textbook Engagement and Learn R with DataCamp sections. For specifications on the data report’s format and content, consult the Data Report Instructions and the subsequent section below.

B.4 Data Report on Financial Performance Indicators

For this assignment, select a publicly traded company of your choice and analyze its financial performance indicators. Your analysis should include a comprehensive evaluation of the company’s balance sheet, income statement, and cash flow statement. Compare these indicators with those of key competitors and industry benchmarks. Additionally, visualize historical trends and identify significant events that have impacted the company’s financial performance. Your final report should provide a clear, data-driven assessment of the company’s financial health and offer well-supported recommendations.

As preparation for this assignment, please work through the module chapters and DataCamp courses listed under the overview section above. Ensure your report adheres to the guidelines detailed in Data Report Instructions, which dictates the creation of two versions: official and internal. Upon completion, submit both versions on Blackboard.