A financial analyst is someone who looks into a company’s assets, debts, investments, and potential for growth. She may do so in the general interest of one or more shareholders, but the information she collects is more often used as a guideline for potential investments, mergers, and divestitures. This job can be done as a freelance consultant or for a company, government agency, bank, stock brokerage firm, or insurance company.
While some in this position perform broad analyses of an organization’s financial operations, she may focus on stocks, bonds, real estate, or other common investment areas. She might specialize in one aspect of a business, such as pension funds or 401(k) plans. If she works for a stockbroker, her expertise may be limited to advising clients on how to make investments that meet their needs and potential for growth.
Large industry segments, such as health insurance, frequently hire an analyst or a team of analysts to investigate all financial aspects of their business. This usually entails a review of individual businesses, their investments, services, and products. A financial analyst is usually interested in anything that has the potential to influence a company’s stock prices or comparative earnings.
A financial analyst’s research sources can be as academic as looking up a company’s publicly available financial statements or as personal as interviewing the company’s top executives to learn about their financial health and outlook. To gain access to internal memos, reports, and documents, she may enlist the help of corporate insiders. An analyst is frequently accused of occasionally overstepping professional boundaries in performing her job, despite the fact that she is normally perceived as objective.
A financial analyst’s investigation usually includes field work, interviewing, and general research, as well as statistical and industry-specific software. She is frequently asked to submit spreadsheets and narrative reports that detail her findings. A financial analyst is likely to be connected to several websites 24 hours a day that monitor international financial markets and activities. In order to gain access to sensitive information and build strong relationships within the industry, this position typically requires excellent communication skills.
A bachelor’s degree in finance, economics, business administration, or a closely related field is required for this position. For this position, a master’s degree in business administration (MBA) is becoming more and more of a requirement. Regardless of an applicant’s educational background, she is usually trained on the company’s internal policies and procedures once she is hired.