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Financial Analyst Salaries in India: 2024

Posted on by Imarticus Learning

As the Indian economy continues to expand, the demand for skilled financial analyst professionals has seen a significant uptick. These professionals play a crucial role in guiding businesses through complex financial landscapes and making informed decisions that drive growth and sustainability. In 2024, financial analyst salary in India reflects the increasing value and demand for these experts. This comprehensive report will take you through the various aspects of financial analyst salary in India, providing an in-depth analysis of factors influencing earnings, regional disparities, industry-specific trends, and the impact of experience and education.

Overview of Financial Analyst Roles

Financial analysts are integral to the financial health of organisations. They analyse financial data, create financial models, and provide insights that help businesses make strategic decisions. Their responsibilities include:

  • Evaluating historical and current financial data
  • Performing variance analyses
  • Forecasting future financial performance
  • Assisting in budgeting processes
  • Advising on investment opportunities

The role demands a high level of analytical skills, attention to detail, and a deep understanding of financial markets and instruments.

Average Financial Analyst Salary in India in 2024

Entry-Level Financial Analyst Salary in India

For those just starting their careers, the financial analyst role offers a promising entry point into the financial sector. As of 2024, entry-level financial analyst salary in India range from INR 4 lakh to INR 6 lakh per annum. This range can vary based on the employer’s size, location, and industry.

Mid-Level Financial Analyst Salary in India

Professionals with 3 to 5 years of experience can expect significant salary increases. For mid-level financial analyst salary in India is between INR 8 lakh to INR 12 lakh per annum. These analysts typically take on more complex tasks and may supervise junior analysts, contributing to strategic financial planning and decision-making.

Senior Financial Analyst Salary in India

Senior financial analyst salary ranges from INR 15 lakh to INR 25 lakh per annum, as the one has experience of over 5 years. These roles require extensive experience, advanced analytical skills, and often a specialised focus in areas such as risk management, mergers and acquisitions, or investment banking.

Factors Influencing Financial Analyst Salary

Educational Background

A strong educational foundation is critical for aspiring financial analyst in India. Those holding degrees from prestigious institutions or having relevant certifications such as CFA (Chartered Financial Analyst) or MBA (Master of Business Administration) often command higher salaries. Employers value these qualifications as they signify a robust understanding of financial principles and analytical proficiency.

Industry of Employment

Financial analyst salary in India vary significantly across different industries. Analysts in sectors such as investment banking, private equity, and consulting generally earn higher salaries compared to those in manufacturing or non-profit organisations. The financial services sector, in particular, offers lucrative compensation packages due to the high stakes and profitability associated with financial decision-making.

Location

Geographical location plays a substantial role in determining salaries. Financial analysts in metropolitan areas like Mumbai, Delhi, and Bangalore tend to earn more due to the higher cost of living and concentration of major financial institutions and corporations. In contrast, salaries in smaller cities or rural areas may be lower but can be offset by a lower cost of living.

Company Size and Financial Health

Large multinational corporations and financially robust companies typically offer higher salaries and better benefits compared to smaller firms. These organisations have the resources to attract and retain top talent by offering competitive compensation packages, performance bonuses, and other incentives.

Regional Salary Variations

Mumbai

As the financial capital of India, Mumbai offers the highest salaries for financial analyst salary in India. Entry-level salaries start at approximately INR 5 lakh per annum, with senior financial analyst salary is upwards of INR 25 lakh per annum. The city’s vibrant financial ecosystem, comprising stock exchanges, major banks, and multinational corporations, drives these competitive salary levels.

Delhi

Delhi, with its mix of corporate headquarters and government institutions, also offers financial analyst salary in India. Entry-level positions start around INR 4.5 lakh per annum, while experienced analysts can earn between INR 15 lakh to INR 22 lakh per annum. The presence of numerous consulting firms and financial institutions in Delhi contributes to these lucrative salary ranges.

Bangalore

Known as the Silicon Valley of India, Bangalore’s thriving tech industry also demands skilled financial analysts. Salaries here are comparable to those in Delhi, with entry-level positions offering around INR 4 lakh per annum and senior roles reaching up to INR 20 lakh per annum. The city’s blend of technology and finance sectors creates diverse opportunities for financial professionals.

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Impact of Experience on Financial Analyst Salary in India

Experience is a crucial determinant of salary levels in the financial analyst profession. With increasing experience, analysts not only enhance their technical skills but also develop a deeper understanding of market dynamics and business strategies.

Junior Analysts (0-2 years)

Junior analysts typically earn between INR 4 lakh to INR 6 lakh per annum. Their roles involve basic financial analysis, data gathering, and reporting under the supervision of senior analysts.

Mid-Level Analysts (3-5 years)

Mid-level analysts see a salary boost to INR 8 lakh to INR 12 lakh per annum. They take on more responsibilities, including leading projects, developing financial models, and providing strategic recommendations.

Senior Analysts (6+ years)

Senior analysts, with extensive experience, command salaries ranging from INR 15 lakh to INR 25 lakh per annum. They are involved in high-level financial planning, and complex analyses and often have specialised expertise that adds significant value to their organisations.

Educational Qualifications and Certifications

Educational qualifications and certifications play a pivotal role in shaping the career and trajectory of financial analyst salary in India.

Bachelor’s Degree

A bachelor’s degree in finance, economics, accounting, or a related field is the minimum requirement for most entry-level positions. Graduates from reputed institutions often have an edge in securing higher starting salaries.

Master’s Degree

Holding a master’s degree, such as an MBA, can significantly enhance earning potential. MBA graduates, particularly those from top-tier business schools, are highly sought after and can command salaries that are substantially higher than those with only a bachelor’s degree.

Professional Certifications

Certifications such as the Chartered Financial Analyst (CFA) designation are highly valued in the finance industry. CFAs typically earn higher salaries due to the rigorous training and expertise that the certification represents. Other relevant certifications include the Financial Risk Manager (FRM) and Certified Public Accountant (CPA) credentials.

Conclusion

In 2024, financial analyst salary in India reflect the critical role these professionals play in the financial sector. Various factors, including educational background, industry, location, and experience, influence salary levels. As businesses continue to navigate complex financial landscapes, the demand for skilled financial analysts remains robust, ensuring competitive compensation for those in the field.

Now that you’ve recognized the opportunities in a financial analyst career, it’s time to discover a certified financial analyst course to enhance your career as a future financial analyst.  A recommended financial analyst course for enhancing your skills is the Financial Analysis Prodegree in Collaboration with KPMG. This program, provided by Imarticus, covers everything from fundamental to advanced finance analysis. It adopts a practical project-based approach, ensuring you gain a realistic learning experience for a secure finance career ahead!

Cash Flow Statement Vs. Fund Flow Statement: Key Differences

Posted on by Imarticus Learning

Financial statements are necessary for companies to keep track of their company’s economic health. Such documents also help business owners make strategies for the future with regard to mergers, acquisitions, investments, and so on. The role of a financial analyst is indisputable in such matters. 

Two such essential components of financial analytics are cash flow statements and fund flow statements. While both might sound the same, in reality, there is a difference between cash flow and fund flow, as these two statements have different features and provide different kinds of advantages to businesses. 

In this article, we will dive into what is cash flow statement and what is fund flow statement, their advantages, and the key difference between cash flow and fund flow to offer a comprehensive view.

Keep reading to learn more!

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What is Cash Flow?

The cash flow of a company refers to its inflow and outflow of cash and its cash equivalent. A cash flow statement is a recording of this money flow to and from the company. 

A cash flow statement is one of the most important pieces of financial statements recorded by financial analysts in order to gauge a company’s current liquidity and help make decisions regarding investments. It also helps keep track of changing opening and closing cash balances. 

The difference between cash flow and fund flow is that cash flow statements are created for specific time periods, like quarterly, semi-annually, or annually. The primary components of cash flow statements are:

  • Cash flow from investing activities
  • Cash flow from operating activities
  • Cash flow from financing activities

Advantages of Cash Flow Statement

The primary advantages of cash flow statement are:

  • It helps in assessing the profitability of a business.
  • It helps in assessing company balance sheets and profit and loss statements. 

Disadvantages of Cash Flow Statement

The disadvantages of cash flow statement are as follows:

  • It provides an incomplete profit view since it excludes non-cash accounting items, resulting in a limited picture of profitability.
  • It cannot be used as a standalone tool and needs to be analyzed alongside other statements, such as the balance sheet and income statement.
  • It represents past cash flows and may not correctly reflect the current or future financial status.

What is Fund Flow?

Fund flow signifies the working capital of an enterprise. Thus, a fund flow statement tracks and records the net movement of funds in and out of the enterprise. 

Fund flow statements are ideal for long-term financial planning. Furthermore, irregularities in company funds can be identified through fund flow statements. In addition to helping monitor the working capital of a business, fund flow statements also aid in capital budgeting. 

The main components of working capital that form a part of fund flow statements are:

  • Inventory
  • Receivables
  • Cash
  • Payables

Advantages of Fund Flow Statement

Let’s look at the following advantages of fund flow statement:

  • It helps company owners and managers understand how efficiently funds are being allocated and utilised within the company. This information can help further optimise the process. 
  • Fund flow statements are useful in deducing the fund-generating capacity of any business. This data can be handy while making future financial decisions. 
  • Fund flow statements also help improve resource usage and better allocation of limited resources. 

Disadvantages of Fund Flow Statement

Below are the disadvantages of fund flow statement:

  • Fund flow statements deal primarily with historical data and do not provide real-time insights into a company’s current financial situation or future prospects.
  • Fund flow statements solely consider cash transactions and exclude non-cash elements such as depreciation or changes in non-cash working capital. This may give an imperfect picture of a company’s financial condition.
  • Fund flow statements can be complex, requiring an in-depth understanding of accounting principles to interpret them correctly. Interpreting the causes of fluctuations in fund balances can be difficult.

Key Difference Between Cash Flow and Fund Flow Statement

While cash flow and fund flow statements are crucial parts of a company’s finances, they differ. The difference between cash flow and fund flow are discussed below:

Cash Flow Statement Fund Flow Statement
Denotes the inflow and outflow of cash and cash equivalent over a given period of time.  Denotes the changing working capital of a company over a given period of time. 
Helps in deducing the net cash flow of a business.  Helps in deducing the financial position of a business.
Is used for cash budgeting. Is used for capital budgeting.
Part of a company’s financial statement. Not part of a company’s financial statement.
Documents the inflow and outflow of cash and changes in the opening and closing balances of cash.  Documents the source and application of a company’s funds. 
All kinds of disclosures regarding the inflow and outflow of cash are mandatory.  Helps disclose the source and application of any given fund. 
Aids in short-term financial decision-making or planning.  Aids in making long-term financial plans and decisions. 

Conclusion

After examining the difference between cash flow and fund flow, we can say that both statements are essential for companies to understand their current financial position and strategize for the long term.

Both of these statements come with their advantages and features; hence, neither can be ignored while making financial decisions. Therefore, companies are always on the lookout for trained financial analysts who can understand the difference between cash flow and fund flow statements, prepare and track such statements, and help make the most effective economic decisions.

So, if you want to take advantage of this market demand, why not get enrolled in Imarticus’s financial analyst course? The Financial Analysis Prodegree course, in collaboration with KPMG, is one of the best in the market to offer you in-depth financial analyst training. Within a span of four months, you will be able to learn all the fundamentals of financial analytics from industry experts, get live online training, extensive career support, industry certification, and much more. Sign up today for a shining career ahead!

Navigating Top Financial Statement Analysis Tools and Techniques

Posted on by Imarticus Learning

Following the performance of the company and its competitors is important in today’s cutthroat business environment, as it will assist the company in sustaining and developing. Planning, directing, and analysing financial business transactions using tools of financial statement analysis enables a firm or organisation to retain its financial position. Common size statements, comparative financial statements, ratio analysis, and benchmarking analysis are the top four tools of financial statement analysis

In this article, let’s learn about various tools of financial statement analysis and other aspects.

Meaning of Analysis of Financial Statements

The process of examining a company’s financial statements to make decisions is known as financial statement analysis. Internal and external stakeholders utilise financial statement analysis to assess the worth and performance of an organisation. 

All businesses are required by financial accounting to produce balance sheets, income statements, and cash flow statements, which serve as the foundation for financial statement analysis. External stakeholders use it to assess the general health of a company as well as its financial and commercial value. It also serves as a monitoring tool for handling finances for internal stakeholders.

Analysts examine financial statements using three methods: ratio analysis, vertical analysis, and horizontal analysis.

Tools of Financial Statement Analysis 

Ratio Analysis 

The relationship between two or more financial statement items is established using the quantitative analysis technique known as ratio analysis. It involves analysing the cash flow statement, income statement, and balance sheet to assess various aspects of an organisation’s operational and financial performance.

Ratio analysis provides insights into a company’s economic performance, such as its effectiveness, liquidity, profitability, and solvency, to help in decision-making.

Common Size Statements 

A common-size statement is one of the important tools of financial statement analysis. It directly impacts the organisation’s financial statements by rendering all items as a percentage of a standard base value. This approach facilitates easier comparisons between companies or different time periods within a company’s history.

Comparative Statements 

Comparative Financial accounts are the financial accounts of an organisation for various periods. Users must employ the tools of financial statement analysis or procedures to understand the comparative statement. 

Several financial statement components may be presented in a comparative format in a table. It makes it possible to quickly compare several parameters across two or more periods. In the context of financial instruments and strategies, the comparative statement is crucial.

Trend Analysis 

Trend analysis is one of the most critical tools of financial statement analysis. It is based on the fundamental principle that past events can serve as predictors of future outcomes. 

Trend analysis is a method employed in financial analysis that utilises historical data to forecast future results. It can be used in one or more organisations within the same period or by a single organisation across different periods.

Fund Flow Analysis 

The methods and instruments of financial statement analysis are enhanced by the inclusion of a cash flow statement. It provides a comprehensive overview of an organisation’s cash inflows and outflows during a specific period. The cash flow statement is used to research how an organisation’s financial status changes from the beginning to the end of a period. 

Cash Flow Analysis 

Cash flow analysis is another crucial aspect of financial statement analysis. It gives a summary of the sources of the cash inflows and outflows for a specific period. 

The cash flow statement is used to examine how the financial health of an organisation changes over time. It keeps a check on the cash movement within a company, including the cash from operating activities, investing activities and financial activities. It is one of the valuable tools of financial statement analysis for assessing an organisation’s cash flow dynamics. 

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Types of Financial Statements Analysis 

Three major strategies are most frequently used by analysts to examine the different types of financial statements of a corporation.

Horizontal analysis:

Horizontal analysis is frequently used to identify growth patterns throughout time. It uses historical data to mainly analyse the value of line items from two or more years. 

Vertical analysis:

The vertical analysis, in addition, contrasts several financial statement components against one another. For illustration, a cost item might be stated as a percentage of revenue generated by the business. 

Ratio analysis

Finally, line-item data are compared using ratio analysis, a key component of fundamental equity analysis. Examples of ratio analysis include price-to-earnings (P/E) ratios, earnings per share, or dividend yield.

Conclusion 

Financial statement analysis is considered to be the pinnacle of understanding and modulating a company’s finances and decisions. To perform this duty, one must grasp the meaning of analysis of financial statements and acquire the necessary skills. 

If you are interested in taking up a course on financial statement analysis, check out Imarticus Learning’s Financial Analysis Prodegree in collaboration with KPMG. This degree would help you to build a career in banking, corporate finance, and private equity easily and enhance your overall career graph. 

What is the Importance of Financial Statement Analysis

Posted on by Imarticus Learning

Financial statement analysis is a crucial practice for individuals and businesses alike. It provides valuable insights into an entity’s financial health, performance, and stability. One can better understand why is financial analysis useful, as it gauges a company’s strengths, weaknesses, and potential risks by carefully examining its financial statements.

Generally accepted accounting standards (GAAP) are the foundation for financial reporting in the United States. The three primary types of financial statements a business must produce and maintain following these principles are the income statement, balance sheet, and cash flow statement. Standards for financial reporting are more stringent for publicly traded corporations. Accrual accounting is required by GAAP, which public corporations must adhere to.

In this blog post, we will explore the significance of financial statement analysis and how to analyze financial statements to make informed decisions.

What is Financial Statement Analysis?

Financial statement analysis involves the examination of financial documents. These statements provide a comprehensive snapshot of a company’s financial position and performance. By analyzing these statements, individuals can evaluate the company’s profitability, liquidity, solvency, and efficiency.

How to Analyze Financial Statements? 

You may assess a company’s financial health using several key indicators.

Some of the more significant ones are listed below:

Growth: Do your company’s sales and earnings go up or down each year? Is there a trend here?

Profitability: Compared to other businesses in your industry, how profitable is yours?

Liquidity: Can the business fulfill its immediate obligations?

Leverage: Does the business use borrowing to operate and expand?

Activity: How well are the company’s assets being managed?

These financial indicators may be used to monitor, evaluate, and assess the company’s financial situation. Profitability, liquidity, solvency, efficiency, and valuation are just a few areas under which financial KPIs (key performance indicators) can be divided.

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Why is Financial Statement Analysis Important for Businesses?

Financial statement analysis is essential to address the demands of stakeholders and other parties while also adhering to company rules and regulations. But just as crucial as adhering to excellent accounting processes is gaining the necessary abilities and instincts to analyze accurate financial statements.

Organizations can gain from different types of financial statements in various ways. It gives internal and external stakeholders a chance to make well-informed investment decisions. In addition, financial statement analysis offers lending institutions a frank assessment of a company’s financial standing, which aids in lending choices. 

Financial statement analysis also aids in corporate governance issues because top executives and other members of management depend on accounting to portray the results of their choices accurately.

Why is Financial Analysis Useful:

Assessing Profitability: Financial statement analysis enables individuals to assess a company’s profitability. Readers can gauge the efficiency and effectiveness of a company’s operations by analyzing key ratios like net profit margin, gross profit margin, and return on investment. Understanding profitability is essential for investors, creditors, and business owners alike.

Evaluating Liquidity: Liquidity refers to a company’s ability to meet its short-term obligations. By analyzing liquidity ratios, such as the current and quick ratios, readers can determine whether a company has sufficient resources to cover its immediate liabilities. This knowledge is crucial for investors and creditors when assessing the company’s ability to handle financial obligations.

Assessing Solvency: Solvency measures a company’s ability to meet its long-term obligations. Readers can evaluate solvency ratios through financial statement analysis, such as the debt-to-equity and interest coverage ratios. Understanding a company’s solvency is vital for potential investors and lenders, indicating its long-term stability.

The Key Financial Criteria Used to Estimate a Company’s Worth

Analysts estimate a company’s worth using several important financial criteria, such as revenue growth, profitability, cash flow, and return on investment. These measures allow analysts to examine a company’s financial performance and determine its potential for future profitability. 

Businesses can compare their financial performance to that of their rivals and industry standards using tools for financial statement analysis. This research offers insightful information on the company’s market position and competitive advantage.

Ultimately, financial research can benefit organizations trying to assess their worth and decide on investments, mergers and acquisitions, and other strategic efforts. Businesses can discover areas for improvement and create plans to enhance their financial position by doing financial analysis.

Uncovering Potential Risks

Identifying Financial Red Flags: Financial statement analysis helps uncover potential risks and red flags. By examining trends, anomalies, and ratios, readers can identify warning signs of financial distress, such as declining profits, excessive debt, or irregular cash flows. This information is invaluable for investors, allowing them to make informed decisions and avoid potential pitfalls.

Assessing Investment Viability: Financial statement analysis is crucial for investors who allocate their funds wisely. By evaluating a company’s financial performance, readers can assess an investment opportunity’s viability and potential returns. Analyzing financial statements provides insights into the company’s historical performance, growth prospects, and competitive advantages.

The Final Words: 

Financial statement analysis is a powerful tool that enables individuals to understand a company’s financial health and performance comprehensively. Readers can assess profitability, liquidity, and solvency by examining key ratios, trends, and anomalies and uncovering potential risks. 

With this knowledge, investors, creditors, and business owners can make informed decisions aligned with their goals and aspirations. Embrace the importance of financial statement analysis and unlock the potential for financial success.

Remember, financial statement analysis is not a one-time activity but an ongoing process. Regularly analyzing financial statements can provide valuable insights and ensure informed decision-making.

In partnership with KPMG in India, Imarticus Learning has created a Financial Analysis Prodegree, a finance course developed to build mastery across various functions. 

This 120-hour financial analysis certification course develops competence across many fundamental finance activities, giving participants the necessary industry knowledge to change or restart their careers. The course is a part-time, four-month course delivered live online on weekends. 

So, dive into the world of financial statement analysis and empower yourself with the knowledge to navigate the complex realm of finance.

The Importance of Financial Analysis in Business Decision-Making

Posted on by Imarticus Learning

If you are a business owner or a decision-maker in your company, then growing your company would be your priority. The importance of Financial Statement Analysis is unmatched.

Business decision-making that can result in success depends heavily on financial analysis. Understanding the financial picture is crucial whether you want to cut expenses, boost earnings, or grow your operations. 

There are various ways to get hold of this understanding. It can be via enrolling in a decent financial analysis course or getting an expert onboard to handle the same.

This blog will discuss the importance of financial statement analysis and how it can assist you in making decisions that will advance your company. So let’s get started and see how useful financial analysis can be when making company decisions.

What is the Importance of Financial Analysis?

The financial analysis evaluates a business’s financial performance and health using various tools and techniques. Financial analysis can help business owners and managers make informed decisions to improve profitability, growth, and sustainability.

Financial analysis, sometimes referred to as financial statement analysis, accounting analysis, or analysis of finance, is the process of determining a project’s feasibility, stability, and profitability.

Financial research can tell if a company will:

  • Continue running its primary operation or a portion of it
  • Make or buy specific materials to make its product
  • Acquire or rent/lease certain machinery and equipment to make its products
  • Increase its operating capital by issuing shares or securing a bank loan 
  • Decide whether to invest or lend funds 
  • Make any other decisions that will enable management to make an educated choice among different options for the operation of its company.

Key financial metrics for decision-making in business

To align yourself with the importance of Financial Statement Analysis, it is essential that one understands the KPIs associated.

The financial analysis for small businesses assesses economic trends, establishes financial guidelines, creates long-term corporate activity plans, and pinpoints potential investment opportunities. This is accomplished by combining financial data with numbers. 

A financial analyst will carefully review a corporation’s cash flow statement, income statement, and balance sheet. Both corporate finance and investment finance environments are suitable for conducting financial analysis.

Calculating ratios from the data in the financial statements to compare against those of other firms or against the company’s historical performance is one of the most popular methods for analyzing financial data.

  • Financial analysis helps you understand how well a company is doing. It’s like getting a peek behind the curtain to see if they’re making money or losing it.
  • Financial analysis is key if you’re considering investing in a company. You don’t want to put your hard-earned cash into a sinking ship!
  • Financial analysis can also help companies make better decisions. By looking at their financials, they can see what’s working and what’s not and adjust their strategies accordingly.
  • Plus, financial analysis can help you plan for the future. You can save, invest, and spend money more wisely if you know how much you have coming in and going out.

How can financial analysis impact business decision-making?

As instructed in many financial analysis courses, there are many various methods of financial analysis, ranging from the straightforward yet effective ratio analysis to the more complex and scary discounted cash flow analysis. The objective is always to know a company’s financial health better and make decisions based on that information, regardless of your approach.

Analysts might utilize vertical analysis to analyze each financial statement item as a percentage of a reference value (such as the percentage of total sales). Alternately, analysts can carry out horizontal analysis by contrasting the financial outcomes of one baseline year with those of previous years.

Regression analysis, year-over-year growth, top-down analysis like market share percentage, or bottom-up analysis like revenue driver analysis are just a few of the financial analysis approaches that include assessing growth rates.

Last but not least, financial measurements and ratios are frequently used in financial analysis. These methods use metrics for a company’s liquidity, solvency, profitability, or efficiency (turnover of resources).

How to conduct financial analysis?

When it comes to the importance of Financial Statement Analysis, the tools and techniques form an important role. Financial analysis can be conducted using various tools and techniques, such as:

  • Financial statements: The formal records of a company’s financial activity and standing are found in its financial statements. These include the cash flow statement, which displays the outflows and inflows of cash from operating, investing, and financing activities. The balance sheet lists a company’s assets and liabilities at a specific time, and the income statement displays a company’s revenue and expenses over time. 
  • Financial ratios: Financial ratios are quantitative measures of the performance and health of a company’s finances. By dividing one financial amount by another, they are calculated. For instance, the net profit margin ratio shows how much profit a business makes for every sales dollar. It is computed by subtracting revenue from net income. 
  • Financial models: Financial models are mathematical depictions of a company’s financial state and future financial predictions. They simulate numerous outcomes and situations based on various presumptions and factors. For instance, a discounted cash flow model calculates a company’s current value based on its anticipated future cash flows. 
  • Benchmarking: Comparing a company’s financial performance and overall health to those of other companies in a similar industry or to industry standards is the practice of benchmarking. Knowing a company’s advantages and disadvantages is useful compared to its peers or rivals.

Conclusion

Financial analysis is essential for any company wanting to make data-driven choices. Businesses may acquire important insights into their financial health and make strategic decisions based on them by evaluating financial statements and employing techniques including ratio analysis, trend analysis, discounted cash flow analysis, and sensitivity analysis.

Take the time to learn about financial analysis techniques and how they might assist your company if you’re a business owner, manager, or just someone interested in money. This will help you know the importance of Financial Statement Analysis in your business.

You can confidently build your business and make better decisions with the appropriate information and resources.

Students wishing to advance their profession in finance can enroll in our own financial analysis course i.e. Imarticus Learning’s Financial Analysis Prodegree. With special real-world case studies and projects that offer practical experience, the advantages of this degree go beyond merely providing academic information. The student’s ability to learn from the finest in the area is made even better by the practical instruction provided by industry professionals.

Free Cash Flow vs Discounted Cash Flow

Posted on by Imarticus Learning

Analysing a company’s finances reveals the overall well-being of the business and its economic health and helps predict the company’s future. Thus, analysing a business’s financial performance indicates whether it has the potential to boost its profits and operations or not.

There are multiple ways of measuring the economic performance of a business, FCF or Free Cash Flow being one of them. If financial modelling and analysis intrigue you, this blog is for you. Jump into this piece to learn more about Free Cash Flow and its component, Discounted Cash Flow.

What is Cash Flow?

Cash flow indicates the overall movement of money in a specific financial year regarding the decline or increment of money in an organisation. Working, funding and contributing are the three ways to ensure smooth money flow. 

Understanding Free Cash Flow

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Every business has its daily operations and expenses, like taxes, payroll, rent, inventory costs, and so on. Free Cash Flow measures the remnants of a business beyond its day-to-day expenses. It’s an effective measure of profit which ignores all non-cash expenses. It only considers the cash, which supports business operations and helps maintain stocks and assets.

Formula:

Free Cash Flow = Operating cash flow – capital expenditures

Various Approaches to FCC

FCF calculation takes two main approaches:

  • Revenue approach: In this straightforward approach, first, all revenues are added, and then the expenses, like cash, interest payment, taxes, loans etc., are deducted.
  • Net profit approach: This approach begins with a company’s net profit, measured after calculating taxes and costs. Add the non-cash elements to your net profit and deduct any significant expenses incurred and interest payments.

Understanding Discounted Cash Flow

DCF, or Discounted Cash Flow, is an evaluation method which estimates investment value based on predicted cash flows. DCF attempts to evaluate an investment today based on predictions about the ability of the investment to create money in the future. Thus, DCF is an ideal tool for budgeting.

Formula:

DCF formula

DCF Calculation

There are three steps encompassing DCF calculation. First, forecasting cash flow expectations from the investment and second, choosing a discount rate based on the total cost of bearing the investment. And last, with a financial calculator, discounting the predicted cash flow towards the current day valuation. 

What are the benefits of Free Cash Flow?

Free Cash Flow removes any guesswork that usually comes with other similar tools. Here are the benefits of FCF:

Offers accurate, detailed stock value

Investors are engaged in daily stock comparisons. However, most valuations are relative, have ease of use and aren’t always accurate. FCF offers the investors accuracy, with detailed stock value and hence helps in better decision making.

Reduces uncertainty

In investment, there’s no tool to avoid uncertainty absolutely. FCF works to substantially reduce uncertainty by separating fruitful stocks from those potentially attracting loss. It helps investors to reduce their overall investment risks. 

A chance to look into a company’s future

If the investors wish to predict a company’s growth, they must estimate backward from the current asset price with the cash flow model. It gives an idea of the company’s actual value.

What are the drawbacks of Free Cash Flow?

Like any other tool, FCF also comes with its share of shortcomings. Here are its drawbacks:

Not beneficial for long-term investors

Short-term investors can benefit from FCF, but FCF does not fit long-term investors. Many uncertainties and mishaps can occur over 15-20 years, and FCF is ill-adapted to accommodate those.

May indicate a lack of investment

Higher FCF values can indicate that the business needs to invest more effectively. On the contrary, extremely low FCF values can indicate a company’s extreme expansion and growth.

What are the benefits of Discounted Cash Flow?

Using precise numbers is one top benefit of using Discounted Cash Flow. It is highly objective rather than subjective. Here are the benefits:

Highly detailed

DCF uses specific numbers, which makes it a highly detailed tool. Such specific values include growth rate, cash flow predictions, etc.

No use of comparables

DCF doesn’t work by using comparables. It doesn’t use market value comparisons, unlike other businesses.

Suitable for long-term investors

For long-term investing, DCF is ideal since it examines long-term values. It examines any project earning or investment through its entire economic life.

Accommodates sensitivity analysis

DCF allows the experts to examine how any change in the investment assumptions can affect the final value.

What are the drawbacks of Discounted Cash Flow?

To be precise, DCF demands that users collect significant data, making it time-consuming. Here are some other drawbacks of the tool:

Difficult to create accurate projections

Projecting cash flow for the next 10 or 15 years is challenging. This analysis is susceptible to various variables, and any minute change in the prediction can have immensely different results.

Complex analysis

Discounted Cash Flow requires multiple data, and the formula itself can be tricky to understand. Thus, it can complicate the entire calculation and require extensive expertise to deduce results correctly.

External factors are excluded

Future prediction is tough, especially in wobbly times. This was particularly proven during the covid times. Thus, often predictions do not generate accurate evaluations. 

Conclusion

Both free cash flow and discounted cash flow are widely used financial tools. While free cash flow is more suitable for calculating business valuations, discounted cash flow offers insight into whether an investment has long-term worth. A financial analysis course can aid prospective financial sector employees in mastering these tools and gaining industry-relevant knowledge.

If you want to bolster your knowledge about financial modelling and the associated tools, you can check out the financial analysis course offered by Imarticus. The Financial Analysis Prodegree, offered in collaboration with KPMG, runs for 120 hours and offers industry certification. This skill-building programme is available for learners as a part-time course, where you can learn crucial and job-relevant skills for a career in financial analysis, financial modelling, equity research, financial valuation, and much more. Learn from top industry experts and give your CV the necessary boost.

Explore Imarticus now and book your seat! 

The Role of Ratio Analysis in Financial Statement Analysis

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Financial statement analysis is a crucial process that enables businesses and investors to evaluate a company’s financial health and performance. It involves examining financial statements, such as the balance sheet and cash flow statement, to gain insights into various aspects of a company’s operations. 

One important tool used in financial statement analysis is ratio analysis. Ratios provide meaningful information that helps assess a company’s financial position, profitability, efficiency, and overall stability. 

Financial statement analysis is the act of studying and analyzing a company’s financial accounts to make wiser economic decisions and increase future revenue.

This blog post will explore the role of ratio analysis in financial statement analysis and its significance.

What is the role of ratio analysis in financial statement analysis?

Ratio analysis involves calculating and interpreting various financial ratios derived from the information presented in financial statements. These ratios offer a quantitative perspective on a company’s performance, allowing analysts to assess its strengths, weaknesses, and trends over time. Analysts can identify areas of concern by comparing ratios with industry standards and historical data and make informed decisions.

The method of examining the connection (or ratio) between two or more financial data points from a company’s financial statements is known as financial ratio analysis.

Here are some best practices for ratio analysis:

  • Pick the appropriate ratios. Ratios are not all made equal. Depending on the sort of firm you are studying and the information you are looking for, some ratios are more significant than others.
  • Use a set of ratios that stays constant throughout time. This will make it easier to see company financial performance trends over time.
  • Compare the company’s ratios to previous ratios, businesses in the same sector, or benchmarks for the sector. You may use this to see how the business performs compared to its competitors.

How to use ratio analysis in financial statement analysis?

Comparable to a magnifying glass, ratio analysis lets you view the finer elements of a company’s financial statements. It works as a detective tool that may assist you in finding hidden hints regarding the operation of the business. 

Investors and analysts can better understand a firm’s financial health and performance by comparing various ratios over time or to other companies.

The study of financial statements may use a wide variety of ratios. Among the most typical are:

  • Liquidity ratios gauge the capacity of a business to fulfill its short-term obligations. The current, quick, and cash ratios are a few examples of liquidity ratios.
  • Solvency ratios gauge an organization’s capacity to fulfill its long-term commitments. The debt-to-equity ratio, the debt-to-assets ratio, and the interest coverage ratio are a few examples of solvency ratios.
  • Profitability ratios gauge a business’s capacity for making money. Some profitability ratios are the net profit margin, return on assets, and return on equity.
  • Activity ratios gauge how well a business uses its resources. The inventory turnover ratio, days sales outstanding (DSO), and asset turnover ratio are a few examples of activity ratios.

You must first collect the financial information for the firm you are evaluating to utilize ratio analysis. The company’s financial statements, normally submitted to the Securities and Exchange Commission (SEC), contain this information. Once the ratios have been calculated, you can compare them to the company’s historical ratios, businesses in the same sector, or benchmarks set by the sector.

Assessing Liquidity and Solvency

Financial Analyst Courses

One crucial aspect of financial statement analysis is evaluating a company’s liquidity and solvency. Liquidity ratios, such as the current and quick ratios, provide insights into a company’s ability to meet its short-term obligations. These ratios indicate whether a company has sufficient assets to cover its liabilities. 

Solvency ratios, such as the debt-to-equity ratio and interest coverage ratio, help determine a company’s long-term financial stability and ability to meet long-term obligations. Financial ratio assessment is the practice of examining a company’s performance and financial health using financial ratios. Investors and analysts can better understand a firm’s financial health and performance by comparing various ratios over time or to other companies.

Evaluating Profitability

Profitability is a key factor in assessing the financial performance of a company. Ratio analysis enables analysts to evaluate profitability through ratios. These ratios measure the company’s ability to generate profits from its operations, indicating its efficiency and competitiveness within the industry.

Analyzing Efficiency and Productivity

Efficiency ratios assess how well a company utilizes its assets and resources to generate revenue. These ratios include inventory turnover, accounts receivable turnover, and asset turnover ratios. They provide insights into a company’s management of inventory, collection of receivables, and utilization of its assets. Analysts can also identify areas where improvements can be made to enhance operational efficiency and productivity by analyzing these ratios.

Comparing Performance and Industry Benchmarks

Ratio analysis is valuable for benchmarking a company’s performance against industry peers and competitors. Analysts can identify areas where a company is underperforming or outperforming by comparing ratios across companies within the same industry. This information helps set realistic goals, identify competitive advantages, and formulate strategies for improvement.

The Final Words

Ratio analysis plays a vital role in financial statement analysis by providing valuable insights into a company’s financial performance, stability, and prospects. It helps analysts and investors make informed decisions by assessing liquidity, solvency, profitability, efficiency, and comparative performance. 

However, it is essential to note that ratio analysis is just one tool among many in evaluating a company’s financial health. It should be used with other qualitative and quantitative factors to form a comprehensive assessment. 

The Financial Analysis Prodegree, offered by Imarticus Learning in collaboration with KPMG in India, is a meticulously designed program. This skill-building course, which lasts 120 hours, equips learners with in-depth knowledge and skills in several fundamental financial areas. It seeks to provide people with industry-relevant skills so they may relaunch their careers in financial analysis.

By leveraging ratio analysis effectively, businesses and investors can gain a deeper understanding of a business’s financial position and make more informed decisions for the future.

Capital Asset Pricing Model (CAPM)

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Data or numbers are quite important for a company, whether to project revenue or estimate costs. Thus to ensure success, any company needs to analyse its numbers properly. Financial modelling is one tool that helps represent a company’s data, past, present and even predicted future. It is used for accurate decision-making. Executives can use this tool for cost and profit estimation of any new project.

One popular financial modelling tool is CAPM or Capital Asset Pricing Model, often used in corporate finance. It helps to understand the relationship between market fluctuations and the risk posed by an asset or security, like a stock. 

Financial Analyst Course

The projected employment growth for financial analysts is 9% between 2021 to 2031, thus making it an ideal career choice. If you want to become a financial analyst, then this is the correct time to take up a financial analysis course. Gain a basic understanding of a few financial models before embarking on a journey to become a financial analyst.

This article examines the CAPM model, its components, working, benefits, drawbacks and so on.

Capital Asset Pricing Model: What Is It?

Every investment comes with a risk and a return. The Capital Asset Pricing Model helps to understand this very relationship between investment risks and expected returns. It helps estimate the probable investment returns and determine the security or stock prices.

CAPM assessment demands a thorough understanding of unsystematic and systematic risks. The model was designed in the early 1960s primarily to estimate systematic risk, a risk which an institution can not avoid. For instance, risks related to inflation, recession, exchange rate, interest rate, etc. 

However, unsystematic risks are those related to investments in specific equities or stocks and are thus not regarded as huge threats. These risks are shareable in the general market. Thus, CAPM helps forecast the success or failure of investment by analysing the systematic risks.

CAPM Assumptions

Here are the assumptions of the CAPM Model:

  • A diversified portfolio managed by investors
  • Investors will lend and borrow at a risk-free return rate.
  • A perfect capital market where every security is valued correctly.

CAPM Formula

Here is the formula for the Capital Asset Pricing Model assessment:

Ra = Rf + Be x (Rm – Rf)

Where,

  • Ra denotes the expected rate of return
  • Rf denotes the risk-free return rate
  • Be is the beta factor of the transaction
  • Rm – Rf denotes the market risk premium

What Are the Various CAPM Components?

Read this section to find out more about each CAPM component. 

Expected rate of return

The expected rate of return is the amount the investor will fetch from investing in an asset. It is based on multiple factors like beta, market risk premium, etc. It’s a long-term presumption about how any investment can roll over in its lifetime.

Risk-free return rate

A risk-free return rate denotes money’s value over time. It is measurable in terms of the yield generated by a 10-year-old government bond of the United States. U.S.-based securities are usually taken as a baseline for this component since it’s highly improbable that the U.S. government would default on payment. Thus, no payment default is synonymous with minimal risks for the investors.

Beta 

Beta measures the volatility of any stock, equity, investment, or asset. It provides an idea about a stock’s risk by analysing its price fluctuation concerning the overall investment market. In other words, the beta factor shows an asset’s sensitivity towards market fluctuations.

Sensitive stocks have incredibly high beta and are thus volatile, while a more stable asset will have low beta and will be less volatile. Measured in number, 1 is the benchmark. Any stock having a beta less than 1 is more stable than market fluctuations and is thus less volatile.

Assets with a beta of more than 1 are less stable than market fluctuations and more volatile. Stocks with negative beta values have an inverse relationship with fluctuations in the market.

Market risk premium

A market risk premium is the investor’s reward for taking a riskier investment rather than opting for a low or zero-risk one. Assets, stocks, or investments with more significant risks have a higher market risk premium than the ones with lesser risks.

CAPM Calculation Example

Here’s an example to understand CAPM calculation better.

Let’s assume that an investor plans to invest in an equity valued at ₹100 per share today. It generates an annual dividend of 3%. Let us further assume that the beta here is 1.3, and 3% is the risk-free rate. We also assume that the investor predicts the market value to soar at 8% per year. 

Thus, the expected rate of return = 3% + 1.3 × (8%−3%) = 9.5%

What Are the Advantages of Using CAPM?

The advantages of using CAPM are as follows:

  • Easy to use because of the simple formula. 
  • Eliminates the assumption of unsystematic risks and only considers systematic risks. It indicates the reality since most investors keep a diversified portfolio.
  • The relationship between return and market risks has been derived theoretically after testing and empirical research. 

What Are the Shortcomings of CAPM?

There’s hardly a doubt that CAPM is a highly effective model. However, this effectivity is also paired with the following drawbacks:

  • The risk-free return rate can fluctuate in a few days, while the model considers short-term securities. This is a crucial flaw.
  • Beta determination can be time-consuming and challenging at times. 
  • The unrealistic assumption is that the investors can lend or borrow at the same rate as the government. 

Conclusion

Finance professionals must have a thorough understanding of financial modelling tools to help them examine the various financial aspects of an organisation. Enrol in a financial analysis course to upskill and launch a successful career as an investment banker or financial analyst. 

The Financial Analysis Prodegree offered by Imarticus in collaboration with KPMG is a 4-month course focused on helping learners secure a career in financial analysis, investment banking, corporate finance, and various other financial sector. Delivered by industry practitioners, the course offers 360-degree learning with industry certifications.

Explore Imarticus Learning to learn more.

Insider Tips for Successful Equity Research Analysis

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Introduction

Equity research analysis is a crucial aspect of the financial world that involves evaluating and analyzing various investment opportunities. Equity research analysts play a vital role in helping investors make informed decisions about buying or selling stocks. If you aspire to become a successful equity research analyst, acquiring the right skills and knowledge is essential.

Financial Analyst Courses

Imarticus Learning, in collaboration with KPMG, offers a comprehensive financial analysis course that equips you with the necessary expertise. In this article, we will discuss some insider tips to excel in equity research analysis and how the Financial Analysis Pro Degree from Imarticus Learning can help you achieve your career goals.

Insider Tips For Equity Research Analysis

1. Develop a Solid Foundation in Financial Analysis

To excel as an equity research analyst, it is crucial to have a strong foundation in financial analysis. This involves understanding key financial statements, such as balance sheets, income statements, and cash flow statements.

The Equity Research Analyst course by Imarticus Learning provides a comprehensive curriculum that covers these essential financial concepts. By enrolling in this course, you will gain a thorough understanding of financial analysis techniques and learn how to interpret financial statements effectively.

2. Stay Updated with Market Trends

Successful equity research analysts keep a close eye on market trends and industry developments. It is vital to stay informed about economic indicators, regulatory changes, and industry-specific news that may impact the stock market. Imarticus Learning’s Financial Analysis Pro Degree emphasizes the importance of staying updated with market trends and provides insights into effective methods for monitoring and analyzing the market.

3. Master Excel and Financial Modeling

Proficiency in Excel and financial modeling is a must for any equity research analyst. These tools enable you to organize and analyze large amounts of financial data efficiently. Imarticus Learning’s Equity Research Analyst course includes hands-on training in Excel and financial modeling. You will learn how to build comprehensive financial models, perform sensitivity analysis, and create meaningful reports and presentations.

4. Develop Strong Analytical Skills

Analytical skills are the backbone of equity research analysis. As an equity research analyst, you need to evaluate a company’s financial health, assess its growth prospects, and determine its fair value. Imarticus Learning’s Financial Analysis Pro Degree hones your analytical skills by teaching you various analytical techniques, valuation methodologies, and investment strategies. These skills are essential for making informed investment recommendations.

5. Conduct In-depth Company and Industry Research

To provide valuable insights to investors, equity research analysts must conduct thorough company and industry research. Imarticus Learning’s Equity Research Analyst course trains you in conducting in-depth research by leveraging various data sources and analytical tools. You will learn how to analyze a company’s competitive position, industry dynamics, and macroeconomic factors that may impact its performance.

6. Develop Effective Communication Skills

Communication skills are crucial for equity research analysts as they need to articulate their research findings and investment recommendations to clients and stakeholders. Imarticus Learning’s Financial Analysis Pro Degree emphasizes the development of effective communication skills through presentation training, report writing, and client interaction sessions. These skills will enable you to convey complex financial concepts clearly and concisely.

Financial Analysis Pro Degree By Imarticus Learning And KPMG

The Financial Analysis Pro Degree offered by Imarticus Learning in collaboration with KPMG is a comprehensive program designed to equip aspiring equity research analysts with the necessary skills and knowledge. This 4-months program provides a structured curriculum that covers essential financial analysis concepts, including financial statement analysis, industry research, valuation methodologies, and investment strategies.

Through hands-on training in Excel and financial modeling, students gain proficiency in analyzing and interpreting complex financial data. The Financial Analysis Pro Degree also emphasizes the development of effective communication skills, enabling students to present their research findings and investment recommendations confidently. With an industry-relevant curriculum and practical learning experiences, the Financial Analysis Pro Degree prepares students for a successful career in equity research analysis.

Final Thoughts

Becoming a successful equity research analyst requires a combination of knowledge, skills, and practical experience. Imarticus Learning’s Equity Research Analyst course, in collaboration with KPMG, provides you with the necessary expertise to thrive in this field. From mastering financial analysis to staying updated with market trends, the course equips you with insider tips for successful equity research analysis.

The Financial Analysis Pro Degree also provides extensive career support and industry certification, which is accepted by top companies around the world. The students of the Equity Research Analyst course are currently working with companies like Wipro, Infosys, Accenture, JP Morgan, TCS and more.

By enrolling in the Financial Analysis Pro Degree, you can take a step towards a rewarding career as an equity research analyst.

How can data help businesses study financial performance and financial markets?

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The finance industry generates a tremendous quantity of meaningful information usually referred to as data. This data is generally stored information on product performance, consumer preference, business performance and other business-related patterns. 

The analysis of this stored data enables businesses to make key decisions, perform comparative analysis, gain competitive advantages, and explore new market opportunities. 

best financial analyst course

Technological advancements have led the finance industry to move towards the storage of data on digital platforms. Advanced analytical tools have helped financial institutions to constantly analyse data and keep up with key trends. 

Data analytics is today a very potent skill and an emerging career opportunity. Those who are willing to make a  Career in Financial Analysis or Market Research should deeply understand the topic of data analytics and its role in financial modelling.

What is Data Analytics?

Data analytics refers to the process of scrutinisation and evaluation of stored data to predict market trends and make insightful decisions for better results. It is a scientific process to design and create a detailed framework of data that enables critical thinking and efficient analysis. It helps to make better business predictions which leads to smart decisions.

Benefits of Data Analytics in Business

The valuable insights provided by data analytics can leverage the economy of the market in unconventional ways. Observing past trends of data and keeping an eye on the current trends aids in the formation of various strategic techniques of planning. Let us discuss a few benefits here –

  • Understanding market demands – Data analytics gives you real-time information on customer demands, products sold, market supply, and revenue generated, among others. It also shows past market trends that help you to develop an overall understanding of the market.
  • Risk analysis – Data analysis enables you to study previous downfalls in the market. By constant analysis of data, you can predict market risks beforehand and thus take prepared actions on time.
  • Better decisions – Data analysis keeps you prepared for any situation beforehand. This provides ample time for critical thinking and elaborate evaluation of situations leading to better decisions.
  • Strategic planning – Data analysis helps to understand the need of the situation and offers a broader vision to look through. A clear vision enables you to study the market’s demands minutely and make strategic plans.
  • Effective marketing policies – Knowing the customer’s needs enables you to design marketing policies according to your target audience. Using market segmentation techniques and micro-niche advertisements can lead to positive marketing policies.
  • Customer satisfaction – Customer satisfaction can become a make-or-break factor for businesses. Data analysis brings awareness to the expectations of customers enabling organisations to provide better products and services.

Types of Data Analytics

Data analytics is majorly categorised into four parts and they are –

Descriptive Data Analytics – Descriptive data analytics studies previous data to understand the factors which lead to success or failure. It looks into past records of sales, marketing approaches, financial operations and other data in order to predict and plan future approaches.

Diagnostic Data Analytics – Diagnostic data analytics studies past records of data to find answers or solutions to current problems. This type of analysis gives great insight into problems and also helps to find patterns in historical events that may turn about the face of the problem at hand.

Predictive Data Analytics – Predictive data analytics allows using data records to calculate the probability of the occurrence of an event. Techniques such as data mining and game theory are used to do this kind of analysis.

Prescriptive Data Analytics– Prescriptive data analytics refers to logical and analytical predictions of situations but doing scientific analysis of data. This enables the decision maker to not only make wise decisions but also state the proper reasoning behind each decision. 

Data Analytics for Businesses

  • Collect and store the required data – A wide spectrum of data gives a better insight. Collect data on all the necessary fields and store them in an organised manner.
  • Use a suitable platform – Various organising tools with both online and cloud options are available today. Choose the most suitable tool to store the data. This data should be easily accessible and available for scrutinisation. Make sure the platform is safe to ensure secured storage of data and avoid any data mishandling or stealing.
  • Choose your strategy – Use the data available to create long-term as well as short-term goals for the organisation. Decide upon a strategy to analyse the data. This strategy must have the potential to impart the desired insights for effective market analysis and taking decisions accordingly.
  • Being practical – Data analytics shows the market realities and trends which helps the management to stay practical. Data analytics ensures you are in touch with the latest market trends. Based on these trends, you make practical decisions that will undoubtedly lead to high-quality financial modelling.

Role of Data to Study Financial Performance and Financial Markets

With the growing competition in the finance market, data has become the key tool to accelerate financial procedures.

Organisations can take informed decisions, predict risks and plan strategic market policies with the help of data analysis. This improves the financial performance of the organisation and boosts its market growth. 

Data analytics is the most powerful tool of this digital era which gives organisations valuable insights to make major financial predictions.

Data records also let financial institutions stay ahead of time by making smart predictions. Thus, data analytics lowers market risks, improves financial performance and has proven its role in the financial markets.

Conclusion

Data analytics is now emerging as a full-fledged career option due to its important role in the finance sector. Technological expertise and analytical skills are the major qualities a data analyst will require to thrive in this industry.

If you are aspiring to build a Career in Financial Analysis and want to upskill yourself with advanced knowledge, consider Imarticus’s Financial Analysis Prodegree in Collaboration with KPMG. This is a certified course of a 120-hour skill-building program where you get to learn directly from industry practitioners. 

Visit Imarticus Learning for more information.