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Financial Analyst Interview Questions

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

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Whether you are preparing to interview a candidate or applying for a job, review our list of top Financial Analyst interview questions and answers.

  1. Why did you become a financial analyst? See answer
  2. What is your greatest strength as a financial analyst? See answer
  3. What licences or certifications do you currently have as a financial analyst? See answer
  4. What financial methodologies do you use to analyse data or records? See answer
  5. What do you think are the most important factors to consider when evaluating investment opportunities? See answer
  6. How do you produce financial reports after analyzing records? See answer
  7. Imagine a client wanted to take a risky investment opportunity. How would you ensure they followed safe financial practises? See answer
  8. How would you describe your ability to work with others? See answer
  9. Why do you want to work here as a financial analyst? See answer
  10. Imagine you found inconsistencies in a company’s financial reports. How would you handle the situation?
  11. What do you think is the best metric for analyzing a company’s stock?
  12. What financial statement would you use to assess a company’s assets and liabilities?
  13. What would you do if you didn’t have the financial information you needed to make forecasts or recommendations?
  14. Can you explain how a company’s income statement would change if its debt increased?
  15. Imagine a company’s accounts receivable increased. How would the change affect its cash flow?
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Our mission

Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

Read our editorial guidelines

15 Financial Analyst Interview Questions and Answers

Why did you become a financial analyst?

Asking this question helps you learn more about a candidate and their long-term career goals. It also reveals what excites them and motivates them to work as a financial analysis. What to look for in an answer:

  • Passion for financial analysis
  • What motivates a candidate
  • Drive to improve and take part in professional development opportunities

Example:

"My love for math made me pursue a career in financial analysis. It's exciting to work with financial data and make forecasts and recommendations. I have an analytical mind, and this helps me enjoy each day at work. I look forward to joining your team and helping clients make investment decisions as a financial analyst."

What is your greatest strength as a financial analyst?

The goal of this question is to find out more about a candidate's professional abilities. An excellent candidate would mention a strength that relates directly to their career. What to look for in an answer:

  • Confidence in their greatest skills and abilities
  • Example to support their response
  • Desire to apply their greatest strength in your organisation

Example:

"My discipline is my greatest strength as a financial analyst. When reviewing financial data or records, I focus completely on the task until it's done. I also pay keen attention to details and have excellent strategies to prevent procrastination. I believe these qualities make me stand out as a financial analyst, and I'm eager to contribute to your organisation's financial plans."

What licences or certifications do you currently have as a financial analyst?

The goal of this question is to determine a candidate's qualifications. A promising candidate uses the opportunity to talk about why they pursued certain industry licences or certifications. What to look for in an answer:

  • Relevant licences or certifications
  • Explanation on how licences helped improve their skills
  • Interest in professional development

Example:

"I became a chartered financial analyst (CFA) three years ago after meeting the Chartered Financial Analysts Institute requirements. I pursued this licence to learn and gain more experience with subjects like investment analysis and financial reporting. I also developed my analytical skills by earning a CFA designation. I love learning and staying current with developments in financial analysis."

What financial methodologies do you use to analyse data or records?

This question aims to find out whether a candidate is familiar with the industry's terminology and concepts. What to look for in an answer:

  • Knowledge of various methodologies for financial analysis
  • Description of how to apply methodologies
  • Relevant work experience

Example:

"I use trend, vertical, and horizontal analyses to understand a company's financial position over time. I'm also familiar with how ratio analysis can help to determine a company's liquid assets, operational efficiency, and profitability. In my five years of work experience, I used these financial methodologies for different situations. I'm also proficient with financial analysis tools, such as Bloomberg and Capital IQ."

Imagine you found inconsistencies in a company's financial reports. How would you handle the situation?

This question helps you understand how a financial analyst would respond to an ethical dilemma or potential issue. What to look for in an answer:

  • Decision-making skills
  • Desire to follow and enforce ethical business practises
  • Honesty and moral values

Example:

"At my last job, I was analyzing a startup's financial records. I found that the cash inflow didn't quite add up to the company's cash outflow. There was no explanation for the imbalance from the records I had. I first double-checked before notifying my finance manager of the situation. She later contacted the business owner. I pay keen attention to details and always act ethically when dealing with customers, employers, or my colleagues."

What do you think are the most important factors to consider when evaluating investment opportunities?

This question evaluates a candidate's understanding of basic financial concepts. It also assesses their financial analysis skills. An excellent candidate would mention multiple factors to consider before recommending an investment opportunity. What to look for in an answer:

  • Critical-thinking and decision-making skills
  • Level of experience as a financial analyst
  • Understanding of risk management

Example:

"The investment opportunity's risk in relation to its reward is key. Assessing the organisation's portfolio and the investment's time horizon is also important. As a financial analyst, I typically recommend companies take calculated risks when investing capital. The investment opportunity should also fit the company's current strategies and financial plans."

What do you think is the best metric for analyzing a company's stock?

This question tests a candidate's risk assessment knowledge. An excellent candidate would explain their strategy for measuring a stock's performance. What to look for in an answer:

  • Knowledge of the best metrics for analyzing stock
  • Understanding of risk assessment strategies
  • Critical-thinking skills

Example:

"The price-earnings to growth (PEG) ratio is a good metric for analyzing a company's stock performance. If the value is greater than one, the stock is overvalued. Otherwise, it's undervalued or fairly priced. In my experience, the PEG metric gives more insight into a company's financial health. It considers the projected earnings growth."

What financial statement would you use to assess a company's assets and liabilities?

The goal of this question is to assess a candidate's understanding of basic financial statements. Financial analysts often use these statements daily, and they must know how to assess a company's assets and liabilities. What to look for in an answer:

  • Decision-making skills
  • Ability to analyse situations and think critically
  • Understanding of key financial analyst terms and concepts

Example:

"I'd use a balance sheet and income statement to evaluate a company's assets and liabilities. A company's cash statement only provides information about cash inflow and outflow. However, if I were to analyse a company's financial health, I'd consider all three financial statements."

How do you produce financial reports after analyzing records?

Preparing and compiling financial reports is an important duty of a financial analyst. By asking this question, you can understand what steps a candidate takes in creating or compiling reports. It also reveals which tools they're comfortable using to create financial reports. What to look for in an answer:

  • Work experience as a financial analyst
  • Knowledge of financial report components
  • Preferred financial reporting tool or platform

Example:

"I use SAS to prepare financial reports because the software has a user-friendly interface. Depending on the type of report, I create tables, statements, charts, and graphs. I also include details such as the assets, liabilities, equity, earnings, and net income from my analysis."

What would you do if you didn't have the financial information you needed to make forecasts or recommendations?

This question evaluates how a candidate handles challenges at work. Their answer would reveal how they find missing financial information. What to look for in an answer:

  • Research skills and interest in continuous learning
  • Understanding of when to inform upper management or clients
  • Decision-making and critical-thinking skills

Example:

"If I didn't have the required information, I'd first go through the client's transactional history and try to find the information myself. I think figuring things out independently is important, it helps me learn. If I found the information, I'd contact the client and confirm its accuracy. Otherwise, I'd inform my manager of the situation and suggest they reach out to the client."

Can you explain how a company's income statement would change if its debt increased?

This question assesses a candidate's financial expertise and understanding of various financial statements. A promising candidate can clearly express how debt affects a client's income statements. What to look for in an answer:

  • Logical explanation for and confidence in their answer
  • Critical-thinking skills
  • Effective communication skills

Example:

"An income statement tells you about a company's net income and expenditure within a period. It reveals whether a company is making a profit or a loss. An increase in the company's debt leads to a decrease in its net income, which is listed on the income statement."

Imagine a company's accounts receivable increased. How would the change affect its cash flow?

This question assesses whether a financial analyst understands the relationship between accounts receivable and cash flow. What to look for in an answer:

  • Experience managing similar scenarios
  • Understanding of key financial concepts
  • Critical-thinking and decision-making skills

Example:

"Accounts receivable refers to the money due to a company, and I record it as a current asset on balance sheets. If a company's accounts receivable increases, this means more money is due. Therefore, there would be a decrease in the company's net worth and cash flow. The company's assets would also decrease in value with an increase in accounts receivable. Continuous increase in the accounts receivable can make the company run out of money, so it's important to monitor."

Imagine a client wanted to take a risky investment opportunity. How would you ensure they followed safe financial practises?

Financial analysts help individuals and companies make smart financial decisions. By asking this question, you can find out more about a candidate's ability to identify risks and make informed recommendations. What to look for in an answer:

  • Understanding of risk analysis strategies
  • Problem-solving and critical-thinking skills
  • Desire to help clients make good financial decisions

Example:

"Recommending safe portfolios is an important aspect of my job as a financial analyst. It's also my duty to analyse the risk involved in investments and prepare financial statements for clients. If a client wanted to take a risky opportunity, I'd suggest they reconsider their decision and propose an alternative investment. However, I understand that the final decision rests with a client."

How would you describe your ability to work with others?

Financial analysts often need to work with portfolio managers, financial managers, and accountants. This question evaluates whether a candidate is a team player. Their answer would give you insights into which team or groups to place a financial analyst. What to look for in an answer:

  • Teamwork and collabouration skills
  • Strong interpersonal and communication skills
  • Motivated to reach a shared goal for clients and your organisation

Example:

"I work well with other finance and accounting professionals to reach a shared goal. In my last job, my manager grouped me with two senior and four junior financial analysts. Our goal was to analyse investment opportunities for a top bank in Ontario. Working with experienced professionals helped develop my analytical skills. I also improved my leadership skills by working with junior financial analysts."

Why do you want to work here as a financial analyst?

This question helps you determine what interests a candidate about your organisation. It also tells you more about a candidate's career goals and whether their skills, experience, and training would be valuable. What to look for in an answer:

  • Long-term career goals
  • Drive to work as a financial analyst
  • Research about your organisation and preparation for the interview

Example:

"I see this opportunity as a way to contribute to the fast-moving technology industry. I've followed your company's progress over the last few years, and I'd love to work here as a financial analyst. I feel I am well-suited to this position because of my skills, training, and experience.. I also want to work here because of your organisation's reputation for providing career development opportunities."

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