A financial analyst career is probably the most coveted one in a financial services company. They help organizations make crucial decisions with regard to investments and other financial matters. This job doesn’t just pay well but also offers other career opportunities. The industry is very competitive and one must master all essential skills to progress and prosper. You can know about financial certification courses that can help in securing an analyst’s job here.
What Does A Financial Analyst Do?
Decisions are very critical in businesses and they must be taken based on solid data instead of guesswork. Financial analysts go through a large amount of data and use their findings to advise management about investment decisions. These experts research macroeconomic and microeconomic factors that can affect the industry. Their company’s fundamentals are also taken into consideration to find out investment opportunities. Decisions to sell or buy a firm’s stocks are also made on the suggestions of financial analysts.
Companies also hire experts who have attended the XLRI financial analyst certificate course to help them in market expansion. These analysts are used for finding out the effectiveness of various marketing campaigns. They help establishments to know much has been earned on their marketing cost. Many organizations use financial analysts to study the working of franchisees and their profitability. Specialists in this job help firms know whether opening new franchises can be beneficial.
Skills That A Financial Analyst Must Possess
Financial certification courses from institutions like XLRI can guarantee you a financial analyst’s job. But it is necessary to master the special skills that are of utmost importance to perform your duties well. It is best to start developing these skills while attending the course.
Research Skill
Research is the most important part of a financial analyst’s job. A person must know what data must be analyzed. He or she must use proper research skills to mine the precise data that can produce good results. The specialist must have a clear understanding of what is to be achieved by analysis. Researching companies that are similar in structure and belonging to the same industry can help gain insights into their business model. Such details help in arriving at correct solutions.
Analytical Skills
Correct solutions can be obtained by analyzing the right data. Analytical skills don’t usually come from reading books. Attending the XLRI financial analyst certification course can help you in developing such skills. You can get more details about the course here. One must nurture this skill and become an expert at it through experience. Gaining proficiency in databases and Excel can help in analyzing and comparing data. Having expertise in pivot tables, graphs, and excel formulas will help in analyzing data.
Skills To Use Technology
Analyzing large amounts of data comes with many problems. Managing them is not easy. This is where technology can come to help. Many firms are looking at people who are strong in SQL. This helps in managing large volumes of information. Proficiency in other languages like Python, R, and SAS can also be very helpful for financial analysts. Knowledge of Excel and PowerPoint are seen as additional qualifications. An analytical expert must also be skilled at using various other customized analytical tools.
Communication Skills
It is not enough to analyze data and arrive at solutions. One must be able to communicate the findings and suggestions convincingly. A financial analyst must possess excellent oral and written communication skills. They must be able to explain complicated financial terms in simple language that anyone can understand. Communication skills are also essential when representing the company and discussing with clients. Such skills also help in gathering information from other entities easily.
Mathematical Skills
Any job in the financial department involves maths. An analyst’s job is mostly number-crunching and how complex it can be, depends on what level one is working at. A person must possess excellent mathematical skills when valuing companies using the DCF method. Such skills are essential to finding the investment potential and what future returns one can expect from it. Those who are involved in evaluating credit default swaps must know complex math formulas.
Leadership Skills
Like any job, this is a skill that financial analysts need too. Financial certification courses place a lot of importance on teaching these skills to the students. When you become the leader of a team of analysts, these skills help in leading them and getting the best out of them. Leadership skills are also essential when mentoring newly-appointed personnel. It helps to create a collaborative atmosphere and helps in building an effective team. New entrants must also possess this skill to manage projects well.
Decision Making Skills
An analyst is faced with tough situations that will require him or her to make proper decisions. Clients depend on his or her skills to make the right investment. It is essential to decide on the right companies to merge with. Analysts are also faced with difficult tax situations where proper decisions can save a lot of money. Possessing this skill can greatly help in moving ahead in one’s career. Employers like to hire someone who can make quick decisions that will benefit their firm.
Attention To Detail
Financial analysts must always be alert and take even the minutest detail into account. A very minor mistake in valuation can lead to huge losses for their clients. Even silly mistakes like wrong typing can end in a disaster if overlooked. A difference of even one percent in growth rate or DCF model can end in the wrong valuation. You must pay utmost attention when analyzing trends because even a small error can result in wrong decisions being made. Even the most minor changes in format and writing styles will not be accepted by investment banking clients.
Wrapping Up
Along with an XLRI financial analyst course, it is necessary to simultaneously develop the above skills if you want to be successful as a financial analyst. One must start with analyzing what skills one already possesses and what needs to be developed. Once you have decided on the qualities that must be acquired, a time-bound plan must be formulated to achieve that goal.
More Information:
Embarking on a Successful Career in Finance
Lucrative Job Options In The Financial Sector