Financial Analyst Interview Questions & Answers
Financial analysts study the performance of investments such as stocks, bonds, commodities and more to provide guidance to businesses and individuals making investment decisions. They may also advise companies on financial strategy decisions, such as the ideal structure of a corporation.
Whether you're a job seeker preparing to be interviewed for the role of Financial Analyst or
an employer preparing to interview candidates for Financial Analyst position,
these Financial Analyst interview questions will help you prepare yourself for the job interview session.
Financial Analyst Interview Questions
Below are a list of some skill-based Financial Analyst interview questions.
- Have you used any financial modeling software?
- Do you follow the stock market? Which stocks in particular?
- What are the four financial statements used to monitor a company's finances?
- How would you define a cash flow statement?
- What is net present value and how would you use it?
- What are your favorite tools to use when creating financial reports?
- Describe a time you leveraged data to make a decision.
- Do you currently hold any industry licenses or certifications? If so, why did you pursue them?
- What financial methodologies are you familiar with for conducting an analysis?
- What accounting software do you have experience using?
- Have you ever encountered inconsistencies in a company's finances? How did you address this situation?
- Can you tell me about a time you disagreed with a coworker about an assignment?
- Describe a time when your knowledge of current events helped you produce better results
- Do you have experience in benchmarking? If so, when have you used it?
- Why would you need to calculate depreciation?
- What is the biggest mistake you’ve made in your professional career?
- As a Financial analyst, tell me how negative working capital can help a business?
- How do the 3 major financial statements relate to each other?
- Why are dividends not a part of income statements?
- Which ratios are you familiar with, and how would you use them to evaluate the company's financial health?
- What are the components of the DuPont model and how are they calculated?
- If you could only choose one profitability model to forecast your projects, which would it be and why?
- Why is the asset turnover ratio calculated?
- What is important to consider/calculate when reaching a decision on an investment?
- Give one reason why you should analyze long-term liability.
- If you could only choose one evaluation metric to use when reviewing company stock, which would it be and why?
- Should you increase the consumer base by 1% or price by 1%?
- What is EBITDA used for?
- What are the advantages of raising debt over equity?
- What is break-even analysis, and how would you use it?
- What is important to consider when deciding on capital investment?
- How would you explain solvency to someone with no financial experience?
- When do you capitalize rather than expense a purchase?
- How would the income statement change if a company's debts increased?
- What is variance analysis?
- How would you determine the company’s risk profile?
- As a financial analyst which factors do you constantly analyze?
- What factors do you need to consider before taking out a loan?
- How is Cash Flow different from Free Cash Flow (FCF)?
- How would you rate your proficiency in Excel?
- What is ‘goodwill’?
- Describe a time when a piece of your advice as a financial analyst helped senior management make a better decision?
- What is ‘capital structure’?
- Tell us about a time you made a bad financial decision. How would you avoid that happening again?
- What is a ‘composite cost of capital’?
- What was the last project your worked on and what were you specifically in charge of?
- What are ‘adjusting entries’?
- How would you describe positive cash flow to upper management?
- What is ‘cost accountancy’?
- What components would you use to convince an investor about your company's financial health?
- Mention one difference between a P&L statement and a balance sheet?
- If you could only use one financial statement to monitor the amount of cash your company has to put toward current liabilities, which would it be and why?
- What is the difference between a journal and a ledger?
- Explain how financial analysts contribute to an organization’s bottom line.
- Explain quarterly forecasting and expense models.
- What happens to a company's cash flow when there is an increase in accounts receivable?
- What is working capital, and which are the different types of working capital?
- What would you bring to our company as a financial analyst?
Financial Analyst Interview Questions and Answers
Every interview is different and the questions may vary.
However, there are lots of general questions that get asked at every interview.
Below are some common questions you'd expect during Financial Analyst interviews. Click on each question to see how to answer them.
- Why Do You Want To Leave Your Current Job?
- What is Your Greatest Strength?
- Tell Me About Yourself
- Why Do You Want This Job?
- Are You a Leader or a Follower?
- What Is Your Greatest Accomplishment?
- What is Your Salary Expectation?
- Do You Have Any Questions for Us?
- Why Should We Hire You?
- What is Your Greatest Weakness?