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Finance Manager Mock Interview

Question 13 of 25 for our Finance Manager Mock Interview

Finance Manager was written by on January 1st, 2021. Learn more here.

Question 13 of 25

What experience do you have with analyzing business metrics?

"In my last role as Financial Analyst, I created a one page summary entitled Health of Financial Indicators that would be prepared along with the monthly financial reports. The summary included metrics such as Days Sales Outstanding, Days Payable Outstanding, and Free Cash Flow Conversion Rate. The report allowed myself and leadership to identify any trends in the business that should be looked at further. How do you currently utilize metrics in your financial analysis here at XYZ Corporation?"

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How to Answer: What experience do you have with analyzing business metrics?

Advice and answer examples written specifically for a Finance Manager job interview.

  • 13. What experience do you have with analyzing business metrics?

      How to Answer

      Business metrics are key performance indicators that can be used to measure the financial health of the company. A Finance Manager should be able to calculate relevant metrics and compare vs benchmarks. For example, Days Sales Outstanding (DSO) measures the health of Accounts Receivable. If the days outstanding get too high, there is an issue with collecting receivables which could present a cash flow problem.

      Written by Brian Schuchart on January 1st, 2021

      Answer Example

      "In my last role as Financial Analyst, I created a one page summary entitled Health of Financial Indicators that would be prepared along with the monthly financial reports. The summary included metrics such as Days Sales Outstanding, Days Payable Outstanding, and Free Cash Flow Conversion Rate. The report allowed myself and leadership to identify any trends in the business that should be looked at further. How do you currently utilize metrics in your financial analysis here at XYZ Corporation?"

      Written by Brian Schuchart on January 1st, 2021

      Anonymous Interview Answers with Professional Feedback

      Anonymous Answer

      "Business metrics involve business processes that track the performance of the company and can be analyzed by the different financial ratios to measure the profitability, liquidity, and gearing of the business."

      Chad's Feedback

      It is clear from your response that you have an understanding of business metrics, but you have not directly answered the question posed by the interviewer. Your response should focus on your experience analyzing business metrics in past positions. Provide a specific example of a time when you've done this in order to more directly answer the question.