Finance Analyst

For answering this accounting interview question you must not mention the specific program but mention the usage of one program over the other. You can also mention that you would are willing and have the capability to use any program that the organization opts. You can mention that Microsoft excel is the one you prefer as it provides more of statistical and analytical references. In the same manner, to have an enhanced view of graphs or charts which assist in illustration of points, you can mention reports ultimate.

Irrespective of whatever you have used, mention that you have utilized multiple software programs in preparation of reports. Also never forget to mention that you have the ability to capture and become proficient in whatever program the organization follows for the preparation of reports.

☛ Why have you chosen the career of financial analyst? (when answering, focus on the love to numbers and good analytical skills you have)

☛ What makes a good financial analyst nowadays? (focus in your answer on the aspect of being able to find the best within huge amount of data and transferring it into final decisions what to buy and what to sell.)

☛ Why have you chosen our company? (stress the good reputation, challenging environment and most importantly that you really feel you can help this company to do better)

☛ From your point of view, what are the key characteristics of a good financial analysis? (this depends purely on your philosophy. However, taking right decisions in right time – before the others figure it out, is for sure a good attribute of good financial analysis)

☛ Are you familiar with ad hoc analysis?

☛ When did you make your first financial analysis in life? (Try to use your imagination. Maybe you can find some financial analysis also in your personal life.)

☛ What methodologies to you use while doing your financial analysis?

☛ Have you ever used any profitability models for forecasting a project?

☛ Where do you see US financial markets heading in the near future?

☛ What reporting methods do you prefer to use?

☛ Who do you think financial analyst should be in direct touch with in the company, and who should he consult?

☛ What do you consider as the biggest mistake ever when it comes to transactions on financial markets?

☛ Tell me about a time you had to handle large amounts of data. How did you ensure accuracy?

☛ Give an example of a time you found a mistake among a large set of data

☛ Have you ever disagreed with your manager and how did you handle it?

☛ What was the most difficult problem you’ve had to solve and how did you do it?

☛ What do you think was your most successful project?

☛ Describe a time when your knowledge of current events helped you produce better results

☛ Have you ever fallen behind schedule for a project? What did you do to catch up?

☛ Describe a time when a piece of your advice as a financial analyst helped senior management make a better decision?

☛ Tell us about a time you made a bad financial decision. How would you avoid that happening again?

☛ How do your credentials make you better at your job?

☛ Do you have experience in [________]? (e.g. benchmarking, DCF analysis)

☛ What is NPV and where would you use it?

☛ Name the 4 financial statements and how they connect with each other

☛ Describe and explain a cash flow statement

☛ If debts owed to the company increase, how would the income statement change?

☛ Name a few ratios that can help you evaluate a company

☛ What information/model would you need to produce an annual forecasting report?

☛ How would you rate your proficiency in Excel?

☛ Have you ever used this (specific) financial analysis software?

☛ What methods could you use for selecting a project? How would WACC and IRR help you?

☛ What is important to consider/calculate when reaching a decision on an investment?

☛ What developments do you see in the economy of the (specific) industry?

☛ Do you follow the stock market? Which stocks in particular?

☛ Imagine that you hand in a report you are not satisfied with. Later you discover that you made a mistake although your supervisor doesn’t notice. How would you handle it?

☛ Envisage that you are talking to someone who has no financial background. How would you explain the concept of solvency/IRR/ROE etc.

☛ If you had to make a decision about a loan, what are the most important elements you need to consider?

☛ Envisage senior management asks you to create a quick report presenting the financial data they are most interested in. What would you include in that report?

☛ Imagine you have to convince an investor of the company’s overall health. What are some important concepts or metrics you need to present?

☛ Suppose the company shows positive cash flow and management asks you if that means the company is doing well. What do you reply?

There is no specific answer to this analyst interview question and hence, it is mandatory to mention a reasonable point of evaluation and explain the context for using the metrics. When you estimate a company, mention the first point as the operating margin profit as the metric. Mention that you opt for this metric because it shows the management of the company overall apart from the basic profitability. The price earnings to growth ratio can also be mentioned as a single most complete equity valuation metric. You can give a reason that it considers projected earnings growth rate and also higher ranked commonly used price/ earnings ratio (P/E). Make sure to pick any evaluation metric that you prefer is the best. The main trick in answering this question is explaining the strength of the particular metric that you mention.

Accounts Receivable Impact Since accounts receivable and inventory are balance sheet items, they do not directly affect your company’s income statement. Fluctuations or changes in these two current assets always appear on the balance sheet and on the cash flow statement. Revenues on the income statement show up as A/Rs or cash on the balance sheet and cash flow statement. The payment of A/Rs by customers converts A/Rs to cash, which in no way impacts the income statement. Inventory Impact As your company sells products, it reflects its inventory costs in the cost of goods sold line item on the income statement. Therefore, any fluctuations or modifications to the cost basis of that inventory will impact the income statement via the cost of goods sold. However, as with A/Rs, the cost of goods sold on the income statement already reflects inventory valuations on the balance sheet, so inventory-level fluctuations do not affect the income statement.