USNA Finance - Financial Statement Analysis

FE 301: FINANCIAL ANALYSIS

PROFESSOR: LCDR Nicholas Sougiannis

DETAILS: Offered Spring 2026, 1/2/3 MWF

PREREQUISITE: FE210 Principles of Economics or SE201 Intro to Microeconomics

DESCRIPTION: This course provides students with a framework for financial security valuation and analysis, and how to use this framework in a variety of personal, business, & military decisions.

At the conclusion of this course, students shall be able to adapt the knowledge, skills, and tools a CFO uses to finance a corporation to their own personal finances, and use financial literacy as a form of leadership as Naval Officers.

1. Principles of Accounting: (WEEKS 1-3)

Working knowledge of the accounting equation and accounting journal, debits & credits, reconciliation of accounting data into financial statements.

2. Fundamentals of Financial Accounting: (WEEK 4)

Business financial reporting, financial statement literacy, and fundamental analysis of reported data and market data.

3. Principles of Finance: (WEEKS 5-6)

A) Time value of money concepts, definitions, and applications: interest on debt and inflation adjustments. B) Cash flow analysis including discounted cash flows, net present value, and internal rate of return calculations. C) Estimations of cost of debt and equity.

4. The Financial Landscape: (WEEK 7)

Broad exploration of A) the landscape of debt, equity, and derivative instruments; B) financial markets, transactions, and participants; and C) the segmentation of sectors and industries and sources of financial data.

5. Equity Markets & Securities: (WEEKS 8-9)

Private & public equity financing concepts & attributes, dividends; trading, efficient markets, arbitrage, and behavioral finance.

Link to Course Description Video

6. Financial Statement Analysis: (WEEK 10)

Process of extracting and reassembling financial statements, disassembly of core accounts to reveal useful passageways.

7. Equity Valuation & Analysis: (WEEKS 11-12)

Residual income modeling, pricing, and applied valuation techniques.

8. Financial Leverage: (WEEKS 13-14)

Corporate, government, & retail (personal) debt concepts and applications. Applied learning to prices & yields, amortization & principle, and money market & capital market debt securities. Amortized Debt (mortgages & car loans) are also discussed.

9. Cases in Equity Valuation & Analysis: (WEEKS 15-16)

Case studies of company valuations according to course content.

Supplemental Focus:

This course adopts undertones of A) personal financial literacy and competencies; B) finance for the naval leader; C) financial modeling and visualization in Excel; and D) Presentations according to naval aviation standards.

The most significant benefit of this course is the focus on post-commissioning skillsets of a Naval Officer. This includes data-driven analysis in excel, reporting findings in the most consolidated manner possible, and presenting data and findings quickly and efficiently in a professional-military setting.

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