A financial analyst does a wide range of activities that include organizing databases, gathering information, making data-based and logical forecasts and projections, analyzing specific databases, making data-based forecasts and recommendations, generating financial models, making Excel presentations, and presenting financial reports with specific focus on the accuracy of the information given to the decision-makers. He probably has done a Financial Analyst Course.
Kinds of Financial Analysts:
Depending on the area they work in the more popular types of financial analysts are the Analyst in
• Investment banking
• Private equity
• Equity research
• Financial planning and analysis
• Corporate development.
A Financial Analyst Course will help the FA develop his expertise in the area of his interest.
What a Financial Analyst Does
The figure below gives you a fair idea of the tasks, responsibilities, duties and responsibilities, which depend on the industry, organization, and their seniority in the Financial Analyst role.
Financial Analyst Tasks Include
Gather information and task data:
The FA begins all tasks by gathering information and data about whatever the subject to be analyzed. Ex: Past financial reports, stock price information, accounting data from the general ledger, macroeconomic and statistical data, quantitative data and industry research. The sources could be internal or external databases, governmental agencies like SEC, or third-party service providers like Capital IQ or Bloomberg.
Once the data is available it is time to clean, organize and format the data with the system information. The data is sorted by category and type, formulae and functions added to it, consistent formatting added to it so it is readied for analysis.
Analyze financial results
Once the data set is in Excel the FA compares the data with past data and past results for comparative analysis. Metrics and ratios like net margin, gross margin, variable versus fixed costs, YoY growth rates, ROA, ROE, EPS, and debt to equity ratio feature in most reports. Based on the reports, performance is compared with those of the other companies.
Provide projections and forecasts:
Once the data is analyzed the FA makes projections and forecasts of future performances. The most popular methods are regression analysis, year-over-year rates of growth, approaches like the top-down and bottoms-up and more.
Providing gainful insights like how to cut costs, ways to increase market share, opportunities to grow revenue, customer satisfaction, operational efficiencies etc are provided by the FA for the CEO, Management, the board of directors or CFO to make their decisions.
Create models in Excel:
Financial modelling is the largest part of the FAs task no matter where they work. And, you will find them in IB, corporate development, equity research, FP and A included. The analyst in financial modelling and corporate finance generally use the models where the three financial statements form the foundation and further advanced models are layered onto these to provide the DCF model, planning models, M and A models or LBO models. This is an important skill you best learn in a Financial Analyst Course.
Make PowerPoint presentations:
The FAs use Microsoft Excel PowerPoint and other graphic-tools like bar graphs, comparison tables, and charts to make their financial statements clear even to laymen. This is the basis of the pitch-books and presentations of the management on which critical decisions are based.
Generate comprehensive reports:
Dashboards, internal reports, presenting KPIs, tracking and monitoring budgets the budgeted and actual are part and parcel of the daily FAs tasks. These are crucial to the client for decision making and should be easy to understand, well-presented, accurate, timely, and full of helpful insights.
Why do the Financial Analyst Course?
The degree at Imarticus Learning is attractive because they offer the latest in technology and skills while training you in a very short period. They use the latest practical learning tools of using project work, assignments, sufficient assignments, tests, hands-on practice and bootcamps to reinforce your learning.
They integrate modules in resume writing, mock interviews, soft-skill development, and personality development while offering convenient timings and modes for professionals and career makers. Their wide range of subjects offered is specific and need-based depending on the training skills required for making a career in financial analysis.
The FA has many daily tasks and his role involves financial numbers crunching and a host of other technical, financial and presentation skills. His insights, forecasts and predictions help the management take crucial decisions regarding budgets, expenses, resources and its allocation.
The role is in high demand and pays well. You can do a Financial Analyst Course at the Imarticus Learning Academy and emerge a well-rounded practically skilled financial analyst with assured placements. Why wait?