Financial Analyst Interview Questions in 2022 (With sample answers)

Updated: Aug 26


Financial Analyst Interview Questions

Financial analyst is one of the few jobs that has seen exponential growth not only in participation but also in the recruitment process. In every company, there is a need for a financial analyst that looks after the finances and analyses them for better budgeting for the company. From freshers to senior financial analysts, it is a great opportunity to learn and grow.


You can portray yourself to a hiring manager in a professionally and knowledgeably manner if you take the time to prepare your responses ahead of time. In this post, we will go through generic financial analyst questions, behavioural questions, fresher questions and in-depth questions with example reply to help you design your own responses.


Frequently Asked Questions for Financial Analysts Job Interviews

1. Who Is a Financial Analyst?

A financial analyst is someone who does financial analysis for external or internal clients as part of their employment.


2 What Kinds of Analyst Jobs Are Available?

Banks, buy- and sell-side investment businesses, insurance companies, and investment banks recruit analysts. Analysts work in three primary categories: those who work for 'sell-side investment companies, those who work for 'buy-side investment firms, and those who work for investment banks.


3. What are the employment prospects for financial analysts?

According to the Bureau of Labor Statistics, the employment market for financial analysts is predicted to rise at a 6 per cent annual pace for the next decade.

4. What are the many kinds of financial analysts?

Analysts work in a variety of fields, including the following:

• Portfolio managers assess and choose investment goods.

• Fund managers make a purchase and sell decisions for hedge funds or mutual funds.

• Rating experts assess and rank the capacity of corporations or governments to repay their obligations.

• Risk analysts assess the risks associated with investments.


Financial Analyst FAQ in interviews

1. Why do you want to be a financial analyst?

To answer this question, you need to make sure that while answering you highlight some of the qualities that make you a perfect fit for this role. Use these qualities to explain your purpose for being a financial analyst and along with this, explain how stable, possibilities for growth and interesting this role is and how can you contribute to it.



2. What if you work here for five years and aren't promoted? Many of our workers do not. Isn't it going to irritate you?

Here the interview is checking if you are an optimistic, pessimistic or realistic kind person. It also checks your proactiveness and how you perceive the situations to be.

Sample answer:

I like to think of myself as ambitious, but I'm also realistic. I'll be content as long as I continue to learn and progress in my current role. Different firms promote individuals at varying speeds, and I'm convinced that working with you will keep me engaged and cognitively active for the foreseeable future.


3. Tell me how many hours you usually work each week and why?

The key to answering this question is, to be honest about it. As it will show your integrity and strengths as well.

Sample answer:

Most of the time, I work really long hours. With the extra time, I attempt to "add value" to each task, both mine and the firms. When our clients read our reports, I want them to believe that they could only have been created by our organization.


Financial Analyst fresher interview questions

As a fresher for a financial analyst interview, one thing to keep in mind before it is to keep your basics strong. Go through the basics of finance as many questions will be asked to relate to it. Being precise is the key. Don’t keep the answers lengthy and don’t run in circles if you don’t know the answer. Following are some of the technical questions asked in a financial analyst fresher interview question:


1. Tell me about the financial statements.

There are three financial statements:

Balance sheet- The balance sheet displays the assets, liabilities, and shareholders' equity of a corporation (in simpler words: what it owns, what it owes, and its net worth).

Income statement- The income statement details the company's sales, costs, and net profit.

Cash flow statement- The cash flow statement illustrates cash inflows and outflows from three activities: operating, investing, and financing.


2. If the company could use only one statement to assess the overall health, which statement would you choose and why?

Here the interviewer wants to check your analytical skill. Choosing one statement to assess the overall health is a tough option but going for the most viable option according to you is the key to acing this question. Use your knowledge about the financial statements and give an answer with logic.

Sample answer:

The statement of cash flows accurately depicts how much cash the firm generates. Surprisingly, it typically receives the least amount of attention. You can probably choose a different response to this question, but you must justify your choice (e.g., the balance sheet because assets are the true driver of cash flow; or the income statement because it shows the earning power and profitability of a company on a smoothed-out accrual basis).



3. What does it imply to have negative working capital?

Some businesses, such as general stores, have negative working capital. Customers pay in advance in a food shop, and inventory moves rapidly, yet suppliers frequently provide 30 days (or more) credit. This means that the firm obtains money from consumers before it requires money to pay its suppliers. In firms with limited inventory and accounts receivable, negative working capital is an indication of efficiency. In other cases, a company's negative working capital may indicate that it is in financial difficulties if it does not have enough cash to satisfy its current liabilities.


Financial Analyst behavioural interview questions

Behavioural questions are used to test your soft abilities. These types of questions put your knowledge to the test. It helps to test many skills like problem solving, pro-activeness, time-management, integrity etc. It can be made up from any past situation mentioned in your resume or the personal experiences of recruiters where they would want to know your perspective. A few examples of it are as follows:

• In response to a specific job circumstance

• Ability to solve problems in order to attain a good outcome

• Your ability to operate as part of a team, as well as your aptitude

Tip:

To prepare for these financial analyst interview questions, select a few particular scenarios from your CV to utilize as examples of leadership, strengths, flaws, collaboration, problem-solving, and more. While you do not need to remember the answers, you should have an idea of what experiences you would like to share and how you would structure them to the interviewer.


Junior Financial Analyst interview questions

Apart from the basic interview questions that are either related to the general theory or behavioural questions based on your resume, here are some questions listed down that will be helpful for a junior financial analyst interview.


1. Where do you see the stock markets heading in the future?

As a financial analyst, they expect you to have some awareness regarding the stock market. The key to answering this question is to be bold with your opinion and set your foot right. Pitch the interviewers a great analysis and the logic behind each reason you mention. Here the interviewer wants to check your knowledge, communication skills, how you analyze the stock market and what is your level of understanding of it.


2. What do you regard to be your worst blunder as a financial analyst?

Describe a blunder and expand on it with a summary of the lessons you learnt from the event. Each of us makes errors, and we learn the most through difficult times–interviewers are well aware of this. The only person who never makes a mistake in their life is the one who never attempts anything meaningful. Therefore, explain your mistake and how are you improving.



3. What do you know about a reverse mortgage?

This question can be asked in any financial analyst interview, be it freshers, xl dynamics, senior financial analysts, etc.

Sample answer:

A reverse mortgage is a type of loan available to homeowners, 62 years or older, that allows them to convert part of the equity in their home into cash

These were some of the questions that can help you crack the interviewer and get you the job of your dreams. Financial analysts’ interviewers’ questions and answers are hard to crack but not impossible. The key is to stay confident and have good research done about the company, its establishment, and other important details. The only way to crack the interview is by highlighting your skills and associating them with real-life examples. Keep mentioning how can you add value to the organization. Keep your resume ready and go through it to identify if any questions can be asked related to it.


All the best for the interview!


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