A financial analyst is a professional who undertakes financial analysis on behalf of clients. They can work for both internal and external clients. Their role is to provide insight into a company’s financial health. They can also develop financial models. This position can be challenging and rewarding. However, not everyone qualifies for this job. Before you can get started, you need to have a solid foundation in finance. To become a financial analyst, you need to have at least two years of experience.
A financial analyst’s work involves analyzing the financial performance of different companies and the state of the market. They may also evaluate the feasibility of a deal. Some analysts focus on bonds, stock markets, or fixed-income instruments. Others specialize in a specific industry, such as insurance. Since the job is fast-paced, it is important to gain a broad knowledge of the field. This will give you more opportunities for advancement.
As the field of financial analysis continues to grow, the demand for qualified financial analysts will rise. Increasing accessibility to educational opportunities has reduced the barriers for entry. After earning a bachelor’s degree, many financial analysts pursue a Master’s degree in business administration. Some financial analysts may also pursue a Master of Science in Accounting (MSA). This master’s degree will improve their resumes and allow them to be more competitive in the field. Typically, a financial analyst must earn between 30 and 60 credits in order to earn this degree. The coursework consists of advanced auditing, management methods, and strategic analysis.
The financial analyst also needs to be knowledgeable in financial modeling. The analyst uses various mathematical and statistical methods to analyze the financial health of a company. Financial models begin by linking three financial statements. These models can also include discounted cash flow analysis and internal planning models.
