Top 25
Financial Analyst Interview Questions
1. How would you handle a conflict with a colleague or supervisor?
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A financial analyst, securities analyst, research analyst, equity analyst, or investment analyst is a person who performs financial analysis for external or internal clients as a core part of the job.
wikipedia.org/wiki/Financial_Analyst
Financial Analyst Interview Questions
2 of 25
Which financial statement would you analyze if you could only choose one?
 
User Submitted Interview Answers
1.
Annual Report of the company.
 
2.
Cash flow statement because you get a real overview of how the company can manage to pay for it's operations and future growth.
 
3.
I would like to keep 1or 2 more backup support with me and use original in use.
 
4.
Its a formal record of financial activities.
 
5.
The best financial statement is the Statement of Cash Flows.
 
Question
3 of 25
What are your weaknesses?
 
User Submitted Interview Answers
1.
Sir I belive that I dont have worst qualities.
 
2.
Allowing others to use my help instead of guiding them to other people for training.
 
3.
Phobia of whether I could do that?
 
4.
I am not a native English speaker, so I am not good at public speaking in English.
 
5.
Cant say specifically about a quality but with reference to my current working I may have to learn to be a bit of diplomatic .
 
Question
4 of 25
Describe the attributes you possess that will make you successful in this position?
 
User Submitted Interview Answers
1.
I am very analytical and am an excellent communicator and team player.
 
2.
Focus, analytical skills and ambition to succeed.
 
3.
Earnestness, good analytical skills, good communication skills, team leader and member.
 
4.
My personality is positive and I enjoy credit and collections. Making a good situation from a bad one. Collecting funds for delinquent accounts by respecting clients and being professional at all times.
 
5.
Learning and continuous process improvement.
 
Question
5 of 25
Do you have experience in annual planning processes?
 
User Submitted Interview Answers
1.
Yes, I manage the annual budget preparation process. I send out a template to each department heads requesting their budget numbers for the next fiscal year. Once I get all budget requests back, I compile the information into one document and conduct a meeting to review each budget with the CEO, CEO, director of Operations and each of the department heads. Then compile the final numbers and together with the CEO, ratify the budget.
 
2.
Yes, at the beginning of the year we look at the financials of the previous years to help us plan out the next year allowing for inflation and fluctuations that may occur in the year.
 
3.
The key to annual planning processes is to follow the steps that it entails with emphasis on reality, hypothesis or assumptions, and calculation based on historical data. We have our foundation which is the Strengths Weaknesses Opportunities and Threats (SWOT), and then Key Issues Assumption and Budgets (KIAB), Strategies and Objectives (SO) and lastly our result: Financial Impact (FI). At Wells Fargo we have a similar build up for what we are to accomplish, what goal we set, what are our forseen issues (slow season, short staff), and how can attack those issues (increase of product knowledge, emphasis on customer interaction, taking advantage of pushing promotional products). And in the end reaching our results in the end and reflect how we performed. This was done on a quarterly basis.
 
4.
Yes, iam involved in monthly budgets regularly.. Also plan for annually on approximaiton.
 
5.
Yes I have been apart of several annual planning processes with multiple corporations.
 
Question
6 of 25
When did you start following the stock market?
 
User Submitted Interview Answers
1.
Age 20, recently and knowing the market seems to be very new and complicated.
 
2.
2007 sophomore year in college. Professor assigned each students 3 companys to research and follow during the semester and prepare the entire business analysis as final project grade.
 
3.
I have no interest in this.
 
4.
When I was in my tweenty.
 
5.
I started following the stock market when I personally became invested in the market.
 
Question
7 of 25
Pick one financial concept and explain it to me.
 
User Submitted Interview Answers
1.
Break even point, this would be the analysis to determine the point at which revenue received equals the costs associated with receiving the revenue.
 
2.
Gross margin is revenue minus cost of goods sold, and before any related expenses and taxes.
 
3.
Money measurement concept.
 
4.
% of completion method: This method is used in construction contracts in which revenue is accrued in line with % of completion method which will be in line with cost spent in actuals.
 
5.
Balance sheet, it shows the company asset and liability. It ability to meet it obligation.
 
Question
8 of 25
Tell me about a time when you presented an oral report on a specific industry or corporation.
 
User Submitted Interview Answers
1.
It was a nice experience and help me to understand about demonstration skills.
 
2.
My strength is heading up seminars for sales explaining the requirements of the credit department in the paint industry. I first took a quick survey from the sales staff asking question regarding their concerns about our credit department and took that information back to management.
 
3.
SGL taking 10 years data of sales, analysing each product, each industry, customer class, unit wise and even customer level detailed analysis.
 
4.
I gave regression analysis of the MLB
 
5.
Its a time where I have explained my process of job like balance sheet reconciliation to my manager and team.
 
Question
9 of 25
Describe a situation where you had to meet a tight deadline.
 
User Submitted Interview Answers
1.
Out of the box thinking, maybe good skill on the computer and excel, new ways to think analytically.
 
2.
Gathering of information from trade and bank references. Review the current account if it is a current client and compare financial statements.
 
3.
Strong accounting knowledge and sound on Excel.
 
4.
Strong Desire in Financial analytics, Proven quite few times.
 
5.
Most turbulent period in the history of Financial market.US stock market crash.
 
Question
10 of 25
What frustrates you?
 
User Submitted Interview Answers
1.
Slow computers and being bored.
 
2.
Nothing actually frustrate me, when my financial analysis does not go down well, I exploit all technicalities to arrive at convincing analysis.
 
3.
When I cant answer anyone's question.
 
4.
When a teammate doesn't pull their weight.
 
5.
If things are not going in right way.
 
Question
11 of 25
How is the current monetary policy affecting your decision making?
 
User Submitted Interview Answers
1.
I dont know, need to review.
 
2.
First of all find out cash inflow after that discounting it by discounted factor. whatever value we got is present value tnan deduct investment frm it.
 
3.
I think I possess adequate qualification and experience required for this position. I m positive that my knowledge and skill will further enhance the analytical and reporting structure of this company. Hence, I consider myself a great fit for this position.
 
4.
I think I possess adequate qualification and experience required for this position. I m positive that my knowledge and skill will further enhance the analytical and reporting structure of this company. Hence, I consider myself a great fit for this position.
 
5.
Balance sheet.
 
Question
12 of 25
Why do you want to become a financial analyst?
 
User Submitted Interview Answers
1.
I enjoy working with data and excel.
 
Question
13 of 25
Tell me about a time you failed.
 
User Submitted Interview Answers
1.
I never failed in any group but as an individual I failed in doing a cube and left handed writing.
 
2.
I was put in a group one time in school for a project, and some of our members did not mesh well with others, as such, they did not help towards the project, and ultimately the quality of the project ended up being poor because others had to over compensate.
 
3.
The top management favour in other group.
 
4.
We form an agricultural firm but its failed to work due to financial constraint.
 
5.
Like to talk about the BS program. Planning, no rush, last minute addition.
 
Question
14 of 25
What profitability models do you find most accurate for forecasting?
 
User Submitted Interview Answers
1.
I wish to know many models, learn from them, and modify in a much better way.
 
2.
It Tottally depends what type of forcast we are doing.... And what is the purpose I.. E if we want accurate forcast with no errors than we need to go with expert panel method and nned to analyse market senarios.. And this method also work in case there is no historical data available w. R. T a new product.. There is a General method used Trend analysis and historical Data sheets to get close to most accurate data forcast.
 
3.
Models are based on assumptions. So first set would be revenues these would depend on market economy and competition and management. Second set would be fixed expenses. Then comes variable expenses which would depend on revenue and excel spreadsheet analysis would capture these calculations to give an overall profitability forecast.
 
4.
It depends on your nature of operation and past years results. When we analyze together we gets a reliable result.
 
5.
Financial and trend model.
 
Question
15 of 25
How do you interpret data concerning investment programs?
 
User Submitted Interview Answers
1.
Investment programs data has to be in line with the current financial market position and interpreting it is more dependent on the macro economic factors and lesser on the competition driven factors.
 
2.
Review it completely and apply.
 
3.
Well interpreting financial data is one of the main tasks of “Financial Analyst”. For interpreting data affecting investment programs one should have the deep knowledge of current trends in business practices, price, yield, stability and economic influences and have the ability to develop forecast reports, spreadsheets and statistical software packages.
 
4.
WIth experience and due deligence.
 
5.
One has to look at the investment cost and the investment out come of the project.
 
Question
16 of 25
How do you ensure accuracy when making projections based on financial data and performance?
 
User Submitted Interview Answers
1.
The most complex assignment would be to analyze the energy production and relating it to the over all manufacturing cost of a textile unit and presenting the data in an integrated report with short falls in electricity production and requirement of a make to order facility.
 
2.
I was new to a training and development team that was in the process of documenting business operational procedures for conversion to a new SAP system. I was assigned to create a presentation on the benefits of converting to the new system for the deployment Director. I was given little information on what the Director actually wanted and minimal direction on who to contact to capture details on the system. Action:I created an outline of what
 
3.
Double checking work, and always having a reason behind a piece of analysis.
 
4.
To lead the project in a proper way.
 
5.
Research assignment for new market. I was analysing them. GEtting data itself was challenge for new market to enter altogether.
 
Question
17 of 25
Which is more beneficial, increase price by a percent, or increase customer base by a percent?
 
User Submitted Interview Answers
1.
Increase customer Base by a percent.
 
2.
Increase customer base by a percent.
 
3.
Increase customer base by a percent.
 
4.
Increase customer base by a percent.
 
5.
Increase customer base by percent.
 
Question
18 of 25
What process do you follow to create reports?
 
User Submitted Interview Answers
1.
In the past I have used Peachtree and I am currently using QuickBooks. I am always willing to learn a new software package.
 
2.
Analyzing the data, talking the data over with colleagues, and finally formatting the reports.
 
3.
Hyperion financial management.
 
4.
Mrcosoft excell and Ms Access.
 
5.
As I said im very new I need to learn about this.
 
Question
19 of 25
What are your long term career goals?
 
User Submitted Interview Answers
1.
My father used to operate a small manufacturing unit.
 
2.
I want to eventually have a higher degree, and eventually with as a due diligence analyst.
 
Question
20 of 25
What are your thoughts on the recent mortgage crisis?
 
User Submitted Interview Answers
1.
Recent mortgage crisis can be avoided by using more stringent banking regulations and policies.
 
2.
The mortgage crisis is a product caused by financial engineering. While it is wonderful to create products for shareholders, we also need to create an environment where all stakeholders can benefit. So, the mortgage crisis pains me.
 
3.
Aggressive financing, high speculations, Faulty Appraisals.
 
4.
It has happened because of the gross negligence of the financial institutions and regulatory bodies, it could have been avoided.
 
5.
more u lend liniently earlier you will be bankrupt
 
Question
21 of 25
How do you feel about travel?
 
User Submitted Interview Answers
1.
The income statement gets affected by the fluctuations through changes in cost of sales and then finally more working capital requirements that in turn may effect the overall revenue and thus the profitability.
 
2.
I love travel. It's my dream to see more sights and visits.
 
3.
While buy the material from the customers, the credit period is 30 days & 60days, p&l hows affects.
 
4.
Accounts Receivable Impact Since accounts receivable and inventory are balance sheet items, they do not directly affect your company’s income statement. Fluctuations or changes in these two current assets always appear on the balance sheet and on the cash flow statement. Revenues on the income statement show up as A/Rs or cash on the balance sheet and cash flow statement. The payment of A/Rs by customers converts A/Rs to cash, which in no way impacts the income statement. Inventory Impact As your company sells products, it reflects its inventory costs in the cost of goods sold line item on the income statement. Therefore, any fluctuations or modifications to the cost basis of that inventory will impact the income statement via the cost of goods sold. However, as with A/Rs, the cost of goods sold on the income statement already reflects inventory valuations on the balance sheet, so inventory-level fluctuations do not affect the income statement.
 
5.
Your profits and losses of the year will be based on the actual amount that you will receive, not what you expect to receive. If inventory is more the carrying costs will build up. Having a negative impact on the income statement.
 
Question
22 of 25
What other factors should you consider besides NPV when selecting a project?
 
User Submitted Interview Answers
1.
Detailed study about the project.
 
2.
Period of project, incoming fund flow and cash out flow, market condition, work certification procedure and payment period, client reputation, forex flatuation chances, etc.
 
3.
ROI, IRR, Cost benefit analysis and ratio .
 
4.
We consider the project at more than npv.
 
5.
benefit cost ratio is another option
 
Question
23 of 25
How do you see Greece's economy unfolding in the next few years due to their recent financial crisis?
 
User Submitted Interview Answers
1.
If the political scenario in greece get stabilized with the structural reforms there is possibility of coming out of the crisis after the bail out is provided otherwise it seems difficult at the moment.
 
2.
Its gonna go further down due to heavily imposed taxes etc. Investors may loose likings to go there.
 
Question
24 of 25
Give me a time when you suggested an improvement at work and it was successfully put into practice.
 
User Submitted Interview Answers
1.
Making pricing decision for one of molecules we sale. They overpriced it, I concentrated on Contribution level.
 
2.
Management was looking to make a change in the company they were using for their uniforms. Upon analyzing the new potential contract it was going to cost us more in the long run by changing companies so they decided to stay with the current uniform company.
 
Question
25 of 25
In your spare time, what magazines, newspapers, journals, do you read?
 
User Submitted Interview Answers
1.
Spare time is mostly concerned with geo polictics and sports journals.
 
2.
Moneycontrol, Daily news paper.
 
3.
I read business times of different news paper to understand the current economic trend and money market trent.
 
4.
Bloomberg and Financialexpress. Com.
 
5.
Cash flow, fund flow, income statements and balance sheet.
 
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