Role of Financial Analyst

What is the Role of a Financial Analyst?

The primary role of Financial Analyst is to analyze the financial data and other relevant information and provide useful insights to the management based on that the business decisions are made. They work on the investment opportunities, analyze the economic conditions, company’s performance and fundamentals to forecast future performance and recommend a course of action, such as buying or selling a company’s share, based on its overall outlook and expected performance.

Below is the list of Top 12 roles and responsibility of Financial Analyst –

Role of Financial Analyst

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#1 – Financial Planning & Analysis (FP&A)

FP&A Analysts perform the tasks of budgeting, forecasting, and analytical work to support the business strategy and to monitor the financial health of the organization. Following are their roles –

#2 – Due Diligence

Analysts perform due diligence for business partnering by way of examining their financial performance and position.

  • In the case of Mergers & Acquisitions, they play a crucial role by performing due diligence.
  • Analysts employed by banks do due diligence before granting loans. They examine all the financial data before concluding whether the client is good to give credit.

#3 – Treasury

Analysts who work in the treasury department take care of the following –

#4 – Financial Reporting

#5 – Investment Banking

#6 – Commercial Banking (CB)

#7 – Portfolio Management

#8 – Corporate Development

Corporate development analyst works predominantly on the following –

#9 – Transaction Advisory

#10 – Valuation

#11 – Equity Research

#12 – Private Equity (PE)

Recommended Articles

This has been a guide to what is the Role of Financial Analyst. Here we discuss the list of top 12 responsibilities including, i.e. due diligence, treasury, financial reporting, investment banking and commercial banking etc. You can learn more about from the following articles –