Financial Analysis Interview Preparation Guide

Financial analysis refers to an assessment of the viability, stability and profitability of a business, sub-business or project.

It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions.

Financial analysts often assess the following elements of a firm:
★ Profitability
★ Solvency
★ Liquidity
★ Stability

As interoffice protocol goes, analysts interact with each other as colleagues while they tend to report to a portfolio manager or other senior in management. A junior analyst may work his or her way up to a senior analyst in a period of three to five years. For senior analysts who continue to look for career advancement, there is the potential to become a portfolio manager, a partner in an investment bank or senior management in a retail bank or an insurance company. Some analysts go on to become investment advisers or financial consultants.

Analysts are hired by banks, buy- and sell-side investment firms, insurance companies and investment banks. Of these specialties, three major categories of analysts are those that work for 'sell-side' investment firms, those that work for 'buy-side' investment firms and those that work for investment banks.

A financial analyst is a person who performs financial analysis for external or internal clients as a core part of the job.

► Can you explain quarterly forecasting, updating revenue and expense models?
► Describe projects in which you have implemented these skills?
► In conjunction with these projects how do you execute input of detailed plans and forecast into the financial systems?
► Describe how you coordinate plan transfers?
► Are you familiar with creating daily sales reports?
► What processes do you use to create reports?
► Have you created month-end sales reports?
► Have these reports involved your knowledge of analysis concerning actual and planned revenues, balance sheets and expenses?

► Can you describe the practices you use for analysis of financial and management reporting?
► Do you have experience in annual planning processes?
► What profitability models have you used for forecasting a project?
► Are you familiar with developing business casing and ad hoc analysis?
► How would you maintain this information throughout a project?
► Have you ever worked on a budget for an expansion program?
► Describe a project; what financial practices did you target?

► How do you relate with program administrators and financial personnel?
► Do you compile and share monthly data involving income, investment, sales forecasting, shipments and cash flow reports?
► What long range plans have you implemented for the firm?
► Are your accounting and knowledge of financial systems abilities used to integrate profit/loss reports?
► Have you been responsible for maintaining a financial system database?
► Have you ever prepared work force reviews?

► What computer systems would you use to prepare illustrated technical reports using graphs, spreadsheets and draw charts?
► What various securities in this industry are you familiar with and how would you compare and evaluate their strengths and weaknesses?
► How do you interpret data concerning investment programs?
► Can you define price yields, stability economic influences, future trends and investment risks?
► How do you acquire knowledge of developments in the field of industrial technologies?
► Can you relate some basic business, finance and economic theories?