Financial Analyst Job Description

Financial Analyst Job Description Guide

A Financial Analyst is a person who implements the fundamentals of financial analysis in order to evaluate the position of the company from the point of view of raising capital in the form of debt or equity, credit ratings, or budging. They are expected to analyze various scenarios including but not limited to current situations in the market and come up with intelligent inferences.

For example, a credit analystCredit AnalystCredit analysis is the process of drawing conclusions about an entity's creditworthiness based on available data (both quantitative and qualitative) and making recommendations about perceived needs and risks. Credit analysis also involves identifying, assessing, and mitigating risks associated with an entity's failure to meet financial commitments.read morein a bank is primarily responsible for deciding if a loan should be given (also called as loan-sanction by bank officers) to people who come to the bank to borrow money. There are several factors that are responsible for deciding if a person can get a loan from the bank.

Financial Analyst JD

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Source: Financial Analyst Job Description (wallstreetmojo.com)

Factors to Get a Loan From the Bank

  1. Whether the person who wants to borrow money is employed or not?
  2. If there is any other loan already taken by the person?

These are some of the many factors a ‘credit analyst’ takes into account before making a decision on whether the bank should lend money or not.

Financial Analyst Job Description

source: indeed.com

Similarly, a ‘financial analyst’ is one who ‘studies’ a company and tries to make predictions about the financial health of the company in the future. As we mentioned earlier, an analyst has to look at multiple factors before making his/her decisions, similarly, a financial analyst also has several factors to analyze and understand before reaching any conclusions about that particular company.

The foremost Financial Analyst job description is to study financial statements of companies. Just like we, as students, are issued grade-cards by our school teacher with different grades for different subjects and an overall assessment of our year-round performance, companies also issue their financial statementsFinancial StatementsFinancial statements are written reports prepared by a company's management to present the company's financial affairs over a given period (quarter, six monthly or yearly). These statements, which include the Balance Sheet, Income Statement, Cash Flows, and Shareholders Equity Statement, must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity in reporting at all levels.read more which consist of information on how they performed their businesses throughout the year.

Sample Job Description

Below is a sample Financial Analyst Job Description.

Financial Analyst Job Description 1

source: indeed.com

Financial Analyst supports and analyzes company financials monthly, quarterly as well as annual and assists in preparing and forecasting annual budget. Below are some of the key responsibilities of a Financial AnalystResponsibilities Of A Financial AnalystA financial analyst analyses a project or a company with the primary objective to advise the management/clients about viable investment decisions. They do a thorough financial analysis and make suitable objective projections to arrive at their conclusions.read more

Key Qualifications

Qualifications

source: indeed.com

Below are the key qualifications required by Financial AnalystQualifications Required By Financial AnalystIf you are planning to become a financial analyst, you will need to fulfill specific educational qualifications. As a minimum criterion, you will require a bachelor’s degree. This will help you enter the job profile of a financial analyst at the elementary level.read more

Skills

Skills

source: indeed.com

Here is the list of top skills and knowledge that a Financial analyst must possess –

Conclusion

In conclusion, as a financial analyst, one is responsible for showcasing the ‘report card of the company’ to various stakeholders. One is also responsible for making future predictions on where the company analyzed is headed in business. In the end, it can be seen that a financial analyst needs to have different skill-sets for different financial analyst jobs for graduates like financial statement analysis, database management, modeling, and predictions, and report writing.

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