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Financial Analyst Salaries in India: 2024

Posted on by Imarticus Learning
Reading Time: 5 minutes

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!

Navigating Top Financial Statement Analysis Tools and Techniques

Posted on by Imarticus Learning
Reading Time: 3 minutes

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
Reading Time: 4 minutes

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.

Financial Analyst course

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.

Insider Tips for Successful Equity Research Analysis

Posted on by Imarticus Learning
Reading Time: 3 minutes

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?

Posted on by Imarticus Learning
Reading Time: 4 minutes

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. 

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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.

What Are Some Good Resources About Learning Financial Analysis?

Posted on by Imarticus Learning
Reading Time: 3 minutes

The spurt in the financial domain is instant, recognizing this trend people have started opting for a career in the finance industry. Building a career in such a competitive space where everyone wants a piece of the pie you have to have the added advantage to stand out from the competition. The Financial Analysis subject is best suited for a budding finance enthusiast who is aspiring for a successful career in this field.

Financial Analysis is a complex subject matter that involves different fragments. You have to gather knowledge about a wide range of subjects. Financial reporting analysis, corporate finance, economics, equity, alternative investments, etc. are some of the prominent topics you’ll have to spend your time upon.

The subject matter of financial analysis involves a comprehensive understanding of the company’s fundamentals to do data analysis and project the future trajectory taking into account the different variables that might affect a company’s overall performance in the short as well as the long run.

Where to Find Good Resources?

I am a firm believer of “learning can happen anywhere”, the catch here is that you got to have an open mind and a knack for learning the subject matter. Keeping attention to detail is a must in the case of learning finance.

Before deciding what resources you need to use for building your knowledge base in any domain, you have to figure out the ‘why’. Why do you want to learn financial analysis? The answers could vary from getting a job in a Financial firm to teaching others about the subject. When you have this answer then only you could establish the degree of knowledge that you need to obtain for your pursuit.

Learning is a continuous process and a subject such as finance is always evolving with the economy and the world so there’s no end to learning here. What you knew a year ago might be outdated today so it needs constant catching up.
Today you’ll find countless resources to learn about any topic in finance. The world of social media has made learning easier and much more convenient than traditional means.

The best resources can be found in the form of video channels on youtube, blogs, online courses, educational websites focusing on the finance niche, etc.

If you want to get a good job in the financial industry, getting validation for your knowledge is important, especially in the big corporate houses. You can opt for professional courses like CFA where you’ll get guidance on how to proceed in a structured manner for your financial analyst education. It is a course dedicated to financial Analysis, upon completion of the course and with relevant experience, you’ll get to use the charter title for a financial analyst.

If you break up a Financial Analyst course it contains two fragments one is involved with building your knowledge base in finance and the other is related to upgrading your analysis and presentation skills which include learning Ms excel and PowerPoint.

You can even focus on learning the two fragments in isolation. You can opt for courses that teach Excel and PowerPoint and other courses which help you with building your financial & accounting knowledge.

There are various books on finance by popular authors which teach financial education in a slightly unconventional manner. Some of the good reads are “Richest Man in Babylon”, “One up on wall street”. You can even find the ebook versions for the same on Amazon for a very minimal price if not free.

Conclusion
To learn financial analysis as a subject you need to figure out the details of the subject matter that includes topics from various subjects including economics accounting, financial maths, etc.

It is important to define your goal for learning financial analysis that will give you a direction and will help determine the degree of knowledge you need for your particular endeavor.

What Are Good Topics For Thesis In Bachelor Of Finance-course

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Reading Time: 2 minutes

One of the essential to earning your degree in finance is that you have to submit your dissertation on a financial analysis topic that has to be eye-catching and demonstrate your ability to defend the topic. Financial Analysis being an ocean of streams and topics it is wise to choose a topic based on your area of interest.

How to write your thesis:

For information on the title page, format to be used, font size, sections, headers etc. use the guidelines laid out in the assignment brief. The thesis layout and writing should include the following for easy understanding of your research and study, great presentation and academic requirements of writing.
A Foreword: A Foreword thanking people who contributed, explaining your thesis briefly and serving as a personal note.
A chapter on Introduction: The introduction chapter is where your research goals, topics of study and the background of your methodology is a must.
The Methodology used: Here you will lay out every step of action taken during your research, analysis and inferences making the process of your study.
Presentation of Data: This chapter should be devoted to outcome presentation, how this helps development and the value of your inferences.

EFFECTIVE STRATEGIES TO RIDE THE EDTECH WAVE
Any additional chapters required.
Bibliography and sources review: In this chapter go about explaining your consultative sources referred to for study. Also, provide a list of literary references that can be looked to for authentication of information and data used.
The Concluding note: Use this chapter to reinforce the main topics and inferences of your thesis while providing constructive ways of furthering studies on the topic and its development.

Interesting Financial Analysis Topics:

Depending on your field of interest (Marketing, taxes, Corporate Governance, etc.) use the following topics to quick-start the thinking process and narrow down your topics.

  • The features of China’s financial markets
  • Fraud and its impact in financial markets
  • Economics of Financial markets
  • The risk analysis of financial markets
  • Impact of governmental decisions on the financial markets
  • The Wall Street Financial markets assessment
  • The financial markets effects caused by the high-frequency trading system
  • Why financial markets flourish in a strong economy
  • The investor benefits in stock markets Government and its impact on capital markets
  • How money markets affect the financial system
  • Spot markets and their effects
  • The features of the Bond Market
  • The spot market features
  • Private investing and the derivatives market
  • Secondary Vs Primary market
  • The impact of the interbank market on foreign exchange
  • Over-the-counter markets roles and impact
  • Third and fourth markets impact
  • IMF and emerging markets
  • The impact of the Greek economy on the European markets
  • Valuations and a bullish market

A good financial analysis course/ financial analyst certification from a reputed company like  Imarticus will boost your career chances and are particularly advantageous to you because of the global robust curriculum, hands-on practice on popular tools, an industry-relevant project involving real-time live data, and excellent mentorship provided which makes you industry-ready from day one. There are very many opportunities, and the payouts are great as witnessed on most job portals.

What Do You Need To Learn To Become A Financial Analyst?

Posted on by Imarticus Learning
Reading Time: 2 minutes

What Do You Need To Learn To Become A Financial Analyst?

The job role of a financial analyst needs a very thorough study of theory and the applicability of principles to practical situations. The best option is to do financial analysis courses and earn the CFA Certification.

Course Skills and requirements
A graduation degree or even a Master’s in Finance goes a long way. Add certifications that are relevant. Those from a non-financial background can also take these courses as most offer boot camps to bring you to speed.
Non-transferable skills will also need to be developed and aligned with the enterprise’s needs. You must have the following traits.

  1. Interpersonal Communication skills
  2. Ability to solve problems creatively.
  3. Collaborative team skills
  4. Ability to work with ambiguity, pressure, and demands from the startup environment.
  5. Discipline and integrity since you will be working on financial transactions.
  6. A good learner as there may be no standard operating procedures in financial interpretations.

Course advantages:
Depending on your career plan, resources, specialization choices, and eligibility here you can choose your certification. These have different prerequisites in terms of educational background, experience, and examinations taken to be finally added on to your resume. All of them provide you with a well-defined skill set meant to ensure you are industry ready and have the required skill sets.

The courses offer a good grasp of basics, concepts, theoretical knowledge, practical skills and certifications that could help enhance your resume and career. They also offer boot camps, short term workshops, and knowledge valuable to enter the industry. Another advantage in such a course is of mentoring by certified and experienced industry aces that helps garner the latest best practices, techniques, skills, and practice on the latest trending technologies in the financial industry.

While CFA certification definitely helps, you will need to be an excellent communicator and work diligently to acquire the best analytical and business skills. You will definitely need to add on technical skills in DevOps, IoT, Python, Machine Learning, Big Data, and Hadoop to aid your role and understanding as Financial Analyst.

Topics covered:
Here is what topics the financial analytics training courses cover. The course topics are covered in detail with case studies, practice assignments and quizzes.

  • How to use Excel
  • Undertake data analysis and manipulation in Excel
  • Basics and concepts in accounting
  • Analysis of financial statements
  • Inferences and forecasting methodology from financial statements
  • Valuation of business from financial analysis data
  • Dynamic and flexible financial model making
  • Data visualization charts in Excel creation and presentation
  • Accounting statements preparation for any company
  • Create balance sheet, cash flows statement and income statement from the basics onwards.
  • Ratio analysis from company financials preparation and interpretation
  • Using a framework to compare different companies financial performances
  • Creation of  financial models that are forward-looking and integrated
  • Forecast, extrapolate financial ratios which are forward-looking
  • Discounted Cash Flows application and techniques of valuation on an actual company performance data
  • Apply valuation technique of Multiples to a real-world company data
  • Presentation enhancing tools like PowerPoint

Conclusion:
A Financial analyst has to have a gamut of traits besides training which can be acquired through online refresher courses and extensive research. The importance of continued learning can never be stressed enough. Once you have your skills in place and your certification to validate you are industry ready, act on taking your skills to the next level.

What is the Easiest Way To Learn How To Analyze Financial Statements?

Posted on by Imarticus Learning
Reading Time: 2 minutes

Financial professionals must know and learn financial analysis to be able to analyse the statements of finance of an enterprise effectively. This requires a financial understanding of the basic key regions as financial analysis courses will teach you. They are : 

  1. Financial statements structure.
  2. The market economics of the environment within which the industry operates
  3. The goals and strategies employed and pursued by the firm to stay ahead of the competition. The route to learn financial statements analysis lies in the below plan or strategy.Industry characteristics and economic factors considerations: Porter’s Five Forces or economic attribute analysis will help determine the activities performing in the chain.Ex creation of the product, its manufacture, the distribution channels, retail outlets, price, transportation costs and so on. You now do the value analysis of the chain.

    Company strategies identification: Look at the company’s product, its nature including the product uniqueness, profit margins levels, brand loyalty creation strategy, and cost control measures. Factors considered are the integration of the supply chain, diversity of geographic locations, industry etc.

    Quality of the statements of the organisation’s financial statements assessment: Assess the key statements for relevance within the boundaries of accounting standards. While examining the accounts pay attention to issues of recognition, classification, valuation in the balance sheet accounts to arrive at a proper assessment.

    The main focus area checks if the balance-sheet forms a complete and real picture of the economic position in the firm. In assessing the statement of income, the focal area is to make a true assessment of earning quality to be the representation of economic performance in the organisation.

    Profitability and current risks analysis: In this step, the financial professionals add value to the financial statements and assessment of the firm through the tools of financial statements.

    Common tools for analysis are ratios of the financial statement which are the key to debt management or coverage ratios, liquidity, profitability, asset management, risk management, and market valuation.

    Ask the two questions related to profitability namely regarding how very profitable are operations and how much profit accrues to shareholders of equity. This enables the forecasting of the future health of the firm.

    Preparation of financial statements and forecasts of financial statements:
    Financial professionals will find challenges in making assumptions that are reasonable when speaking of the health and the firm’s future in comparison to the comparative values of growth in the industry.

    They will then study the effects of funding and cash flows on these assumptions. Standardization techniques and approaches like sales percentile values help draw up the pro-forma of the financial statements.

    Firm Valuation:
    Discounted cash flow methodology is most often used from among the many approaches to assessment of firm valuation. Cash flow is assessed and valued in the context of projected and awarded dividends.

    More advanced and technical detailed analysis techniques use available cash-flows to the enterprise or shareholders of equity. Yet another way would be to use the value-added economics method of relative valuation and measures which are accounting-based.

    The final steps:
    On completion of the analysis, valuation and financial statements the integrity of testing is called upon. Are these figures real and true pictures of the firm’s finances and positions?

    Many representations are fudged, enhanced and irregularly reported making the final test critical and valuable to the forecasting and financial data analysis. The financial analyst needs to be an ace at recognizing manipulation, detecting frauds, and correcting the statements.

What Careers Can You Have After Private Equity?

Posted on by Imarticus Learning
Reading Time: 2 minutes

Private Equity is often hard to get into and means they have careers in the same field for an average of 25 to 30 years. Would they have careers if they decide to move? Let’s explore their options.

 1. Hedge fund choices:
Many PE professionals get bogged down by the frustrating pace and sheer tedious tasks of administration. It takes lots of time to succeed at making deals and more longer to make substantial profits.

No one becomes an overnight millionaire in PE. You wait for a good 5-10 years. That’s when the choice of moving towards hedge funds makes sense and is more lucrative. There exist similarities between PE and hedge funds which makes the junior levels can make a quick switch.

2. Venture capitalist ventures:
Few of the PE professionals find lack of excitement in large deals and seek out investments in performing start-ups and land up switching to funds like VC. A focus on Media, Healthcare and Technology sectors causes the movement to VC favored segments such as these.

3. Own fund launching:
This dream of many sees these professionals launching out with their own. This is more so in the case of senior PE professionals with excellent performance records and good networks of clients.

4. Portfolio/ Corporate Company migration:
Continuously helping portfolio companies to propel growth PE professionals do decide to be employed with a portfolio company in senior positions like CFO, CEO, Business Development Head and so on. Besides being lucrative, you get company stock which makes huge profits when the exit of the fund is successful. The private equity skill-set can be effectively used in corporate finance and strategy with any company.

5. Return to consulting roles:
PE consulting strategy or investment banking is a choice you can fall back on when unhappy for any reason such as poor and failed fundraising, redundancy, unsustainable economic environment, or just that it is still a lucrative choice.

6. The Fund of Funds- Secondary funds: 
PE professionals often leave to gravitate to fund of funds or secondary funds companies. The secondary funds form funds that buy portfolio companies using PE funds at steep discounts directly. The PE funds need liquidity for various reasons like exiting a particular sector or closing rapidly. The Funds of funds are mostly funds that place funds in PE companies rather than company investments.

7. Entrepreneurship is a choice:
Private equity professionals turn out to be highly entrepreneurial as they continuously generate viable business ideas at some point most likely when they are at junior levels. Private equity is a good starting point for becoming an entrepreneur. The networking opportunities and learning chances are awesome.

PE is truly the holy grail of financial professionals, and it makes sense to explore whether they do have choices if they decide to move. Such options and knowledge is why you should do a financial analysis course.

The courses offer a good grasp of basics, concepts, theoretical knowledge, practical skills and certifications that could help enhance your resume and career. They also offer boot camps, short term workshops, and knowledge valuable to enter the industry. Another advantage in such a course is of mentoring by certified and experienced industry aces that helps garner the latest best practices, techniques, skills, and practice on the latest trending technologies in the financial industry.

Consider professionals who know about careers in financial analysis and can mentor you effectively.