A financial analyst is a person who analyses investment performance and assesses the financial statements of different verticals to make business decisions. An analyst is solely responsible for monitoring macroeconomic trends in different sectors and industries; the role of an analyst, therefore, demands strong mathematical, analytical, and data interpretation skills.
Analysts can use data, research, and expert opinions to determine whether projects will work or not. Each type of analyst has different focus areas and levels of responsibility. They evaluate potential financial risks, manage cash flow and balance sheets, prepare annual reports and provide guidance to management on investment strategies.
Essential Skill-Sets of a Financial Analyst
Decision-Making
Decision-making is about choosing the correct option out of many and deciding which one is best for the situation. It's about weighing the pros and cons of each option to see if it will work for you as an analyst. It's also about being able to justify the decision by ensuring it makes sense within the company's goals, mission, or vision.
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