How to Answer: How do you evaluate the financial health of a company?
Advice and answer examples written specifically for a Financial Analyst job interview.
29. How do you evaluate the financial health of a company?
What You Need to Know
The interviewer is interested in knowing what factors you consider when determining a company's financial health. Pay attention to any clues from the job description or website where they expect their candidate's priorities to lie. Be direct in your answer while showcasing your knowledge and experience of the company's industry, economic climate, and competition. Also, consider their prospects for the future.
Written by Kevin Downey on August 3rd, 2023
Answer Example
"I believe that the best way to evaluate the financial health of a company is to dissect their bottom line profit margin, liquidity, solvency, profitability, growth, risk, financial statements, ratio analysis, cash flow analysis, and risk assessment. This will always show me the long-term viability of a company. With that said, it is important to look at many factors before a final analysis is made."
Written by Kevin Downey on August 3rd, 2023