Financial Analyst

Overview

Who is Financial Analyst?

Financial analysts are responsible for assisting their employer to make financially sound decisions. They are entrusted with the financial planning activities for the company. Their primary aim is to use a data-driven approach to anticipate risks and to provide recommendations in the form of financial precautions to the same. They start by obtaining a thorough understanding of the company's objectives and its current status. By forecasting the financial future of the company's revenue and expenditure, the financial analyst shall streamline all relevant processes to improve the financial performance of the company.

They advise companies regarding potential risks and costs associated with any business decision based on detailed predictions about the outcomes of these decisions. Their work is important for a company to increase revenue by maximising upon investment opportunities, reduce costs, and manage assets. A financial analyst is crucial to the fiscal health of a company. They drive the company's present value and future performance in terms of business. 

Typical day at work

What does Financial Analyst do?

Financial analysts analyse financial data and utilise their conclusions to assist businesses in making business decisions. Their analysis is frequently intended to inform companies' investment decisions. Financial analysts, in particular, do research on macroeconomic and microeconomic situations, as well as company fundamentals, in order to create predictions regarding businesses, sectors, and industries. They may also suggest a course of action, such as buying or selling a company's stock, depending on its overall performance and prognosis.

An analyst must be up to date on current advancements in their industry, as well as be capable of developing financial models to forecast future economic situations for a variety of variables. Not all financial analysts examine stock or bond markets or assist their employers in making investment decisions. Companies may also hire an analyst to examine numerical data to determine the cost-effectiveness of various marketing tactics.

 Following are the duties of a financial analyst:

• Assemble, organize, and summarize financial data to examine the current financial standing in relation to the company's goals.
• Perform financial forecasts and construct financial models to predict future changes in the economy, market, and other variables.
• Analyse financial performance in comparison to the forecasts and identify trends, patterns.
• Examine the causes of the variance between the forecasts and actuals.
• Evaluate the capital expenditure and depreciation.
• Examine the current and past financial data, including business plans, patterns.
• Generate and analyze financial reports to be presented to the upper management. 
• Make suggestions regarding the budgets and investment opportunities.
• Provide policy recommendations and measures to reduce costs for financial growth.
• Maintain up-to-date knowledge about the market trends, relevant software.

Abilities & aptitude needed

What are the skills, abilities & aptitude needed to become Financial Analyst?

For one to be adept at this job, strong quantitative skills are required, with excellent critical thinking skills and superior analytical abilities. Proficiency in financial modelling practices along with the advanced knowledge of relevant software packages is necessary to analyze data, monitor trends, and perform financial forecasts. Ease in interacting with the upper-level executives supplemented by the ability to report financial data and communicate findings through clear and concise written reports or presentations is another necessary factor. Interpersonal skills must be developed excellently since they shall be frequently put to use.

Additionally, knowledge of the relevant laws and regulatory practices is a must. Business acumen and expert knowledge about the industry and market trends are essential to success in this job. They should continually take measures to stay updated with the current market trends and industry updates. A keen eye for detail and meticulous organization skills shall be required to handle large amounts of data.

Courses

Which course I can pursue?