Financial analysts are finance professionals who examine and analyze financial data about the business as well as the overall micro and macroeconomic conditions in order to help organizations make their financial and business decisions, especially those relating to investments. This is an umbrella designation and financial analysts generally have specific job titles, roles and responsibilities based on their niche and area of specialization.
If you are planning to start a career as a financial analyst, enrol yourself to the best financial analyst course.
What do they do?
Typically, financial analysts advise organizations about how to make smart investments based on careful, in-depth analysis of the business, market and economic trends. They assist in budgeting, financial reporting and forecasting. For larger businesses, they may even make suggestions on the issuance of bonds, equity, etc. and help in the valuation for mergers and acquisitions. They are required for the financial health of the business and suggest an appropriate course of action. In some cases, they may be required to look into the financial viability and/ or soundness of various activities of the business such as marketing, franchising, etc. with respect to cost. They prepare financial models and forecast future trends of the businesses, profit and loss, economic conditions and so on.
Importance of Financial Analysts
One of the critical factors in assessing a company’s growth and existence is its level of profitability. This, in turn, depends upon how well the financial resources get utilized. Financial analysts help in determining this as well as the overall financial health and performance of the business. They examine and analyze the strengths and weaknesses of the businesses on an on-going basis and making recommendations and remedial course of action based on detailed research and sound reasoning. Financial analysts also make forecasts about the future financial activities of the firm so as to be better prepared. Therefore, they are important for small and big businesses alike, and across sectors.
The financial analysts’ services are in demand in investment banks, banks, real estate, insurance companies, financial consulting firms, etc. to name a few. As mentioned earlier, there are different specializations when it comes to financial analysis which includes (but not limited to) budget analysis, credit analysis, portfolio management, mergers and acquisitions analysis, fund management, hedge funds, mutual funds, money market analysis, risk analysis, tax analysis, financial modelling, finance advice and treasury analysis. Professional courses in finance and accounting will help you in identifying and developing your niche.
The salaries and perks of financial analysts depend upon their level of education, skills and experience. It is a lucrative career for those who are willing to start from the bottom and make their way up. Entry-level salaries are Rs. 3,80,000 per annum on an average and with higher experience and skill level are over Rs.10,00,000 per annum.
To are the question that we started with… yes, financial analysts are in demand. If you aspire to become one, enrol yourself in professional courses in finance and accounting or financial management courses in India and equip yourself with the necessary skills and knowledge.