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Tag: Financial Analysis Course

What Are Some Good Resources About Learning Financial Analysis?

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What Are Some Good Resources About Learning Financial Analysis?

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 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 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 What you knew a year ago might be outdated today so it needs constant catching up.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.

Websites like coursera, udemy, edX provide students with comprehensive knowledge about the subject including test series and contextual subject matter which is updated to current standards.

If you break up financial analysis 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 which 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 teaches 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 endeavour. Online platforms like youtube have so many professionals teaching the subject matter, if you are looking for freebies it’s the best place. There are other educational websites like Coursera, and Udemy which provide a comprehensive courses and certifications for the same.

Also Read: How do I get job into Financial Analysis

How Do I Learn About Financial Analyst Courses and Careers

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How Do I Learn About Financial Analyst Courses and Careers

If you enjoy financial topics and have a numbers-oriented head you might want to make a career in financial analysis. The FA professional tracks the capital market’s stocks, equities, bonds, and such financial instruments to make investment recommendations based on their research and analysis. Look for them in banks, stock brokerages, investment houses, insurance agencies, and other financial institutions. To make a lucrative career in the financial industry you must prioritize education and leverage your Financial Analyst Course.
Doing your course at the reputed Imarticus Learning ensures you get soft-skill training, assured placements and personality development along with the best and most comprehensive syllabus for FAs. Learning to be the high-risk-taking highly rewarded FA is the first step in creating that future. Although your routes may vary what the potential employers look for helps you land those jobs. So, let us explore the Financial Analyst Course and career as a Financial Analyst.

All about the Financial Analyst career:

Let us explore some areas of the FAs career and what to expect from it.

Responsibilities:
A job description for the financial analyst varies depending on the employers vertical. Investment banks and insurance companies have different needs.
You could also consider in-house private funds. Hence, the selling/buying advice is always oriented to the employer’s gains and the products. The FA could also make public recommendations when working for business and publications specializing in these.
The recommendations and observations may pertain to a company’s solvency or profitability. The FAs analysis helps the enterprise make critical decisions regarding budgeting, merchandising, resource allocations and forecasting.
A list of activities for the analyst responsibilities include
• Reading and researching major publications.
• Tracking the micro and macro-economy.
• Preparing sell and buy sided investment recommendations.
• Interacting with management and executive teams to discuss financial and investment strategies.
• Facilitate trading to generate profits.
• Get third-party information on the future and health of investment instruments.
• Execute third-party or employer trades.
• Strategize using effective and creative approaches to buy-sell deals.
• Work on certifications for specific expertise on investments in particular sectors of the industry.
Work Environment:
Financial analysts bear the onus of the enterprise’s financial performance. It is a high-risk, high-reward, high-stress environment. The requirements of rapid decision making, confidence and communicative skills can never be undermined. They are client facing and may have to travel a bit to meet clients.
Schedule:
According to the Bureau of Labor Statistics, one-third of the FAs work over 40-50 hours a week. Most take their work home and have comprised social lives.
Education required:
A minimum of a bachelor’s degree with finance majors and knowledge of subjects like statistics, accounting, and economics is recommended. An MBA adds depth. Certification from the CFA- Chartered Financial Analyst Institute is a must. Those in the securities practice need licensing through the Series-63 and 7 exams.
Experience:
Most FAs start working on completion of their Financial Analyst Course. According to reports from Bloomberg, 16% of the MDs had MBA degrees and 7% CFA certification. Experience will help you climb the ladder of success and decide on the honing of your skills through additional courses and certifications. Career Builder research shows 25% of the FAs had 6-10 years of experience and only 8% are in the 0-2 years of experience. The demand for FAs is thus very high.
Skills:
The FAs skills include a range of skills like
• Financial modelling
• Financial analysis
• Data analysis
• Marketing skills
• ERP systems
• Strategic thinking
• Decision-making:
• Math skills:
• Attention to detail
Salaries:
The BLS reports claim that in May 2015 FAs earn an average of USD 80,310. Those in commodities, securities etc have average wages of USD 94,450 and those in insurance have an average of USD74,500 as a monthly take-home. The commissions of fund managers depend on their market deals value. The highest reported salary in 2015 was USD160,000 and the lowest USD 50,000 pa.
Conclusion:
The BLS reports predict the career of financial analysts will grow by 12% between the years 2014-24. This is a high demand market for FAs. Now is the time to enrol in the Financial Analyst Course at Imarticus Learning and be on your way to becoming a highly sought after financial analyst. Why wait?

We offer financial analyst courses at our centers in Mumbai, Thane, Pune, Ahmedabad, Delhi.

Also Read: What is Financial Analyst Course

What is a Day of Work For Financial Analyst

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What is a Day of Work For a Financial Analyst

A financial analyst does a wide range of activities that include organizing databases, gathering information, making data-based and logical forecasts and projections, analyzing specific databases, making data-based forecasts and recommendations, generating financial models, making Excel presentations, and presenting financial reports with a specific focus on the accuracy of the information given to the decision-makers. He probably has done a Financial Analyst Course.

Kinds of Financial Analysts:

Depending on the area they work in the more popular types of financial analysts are the Analyst in
• Investment banking
• Private equity
• Treasury
• Equity research
• Financial planning and analysis
• Corporate development.
A Financial Analyst Course will help the FA develop his expertise in the area of his interest.

What a Financial Analyst Does

The figure below gives you a fair idea of the tasks, responsibilities, duties and responsibilities, which depend on the industry, organization, and their seniority in the Financial Analyst role.

Financial Analyst Tasks Include

Gather information and task data:
The FA begins all tasks by gathering information and data about whatever the subject to be analyzed. Ex: Past financial reports, stock price information, accounting data from the general ledger, macroeconomic and statistical data, quantitative data and industry research. The sources could be internal or external databases, governmental agencies like SEC, or third-party service providers like Capital IQ or Bloomberg.

Organize information
Once the data is available it is time to clean, organize and format the data with the system information. The data is sorted by category and type, formulae and functions added to it, consistent formatting added to it so it is readied for analysis.

Analyze financial results
Once the data set is in Excel the FA compares the data with past data and past results for comparative analysis. Metrics and ratios like net margin, gross margin, variable versus fixed costs, YoY growth rates, ROA, ROE, EPS, and debt to equity ratio feature in most reports. Based on the reports, performance is compared with those of the other companies.

Provide projections and forecasts:
Once the data is analyzed the FA makes projections and forecasts of future performances. The most popular methods are regression analysis, year-over-year rates of growth, approaches like the top-down and bottoms-up and more.

Provide recommendations:
Providing gainful insights like how to cut costs, ways to increase market share, opportunities to grow revenue, customer satisfaction, operational efficiencies etc are provided by the FA for the CEO, Management, the board of directors or CFO to make their decisions.

Create models in Excel:
Financial modelling is the largest part of the FAs task no matter where they work. And, you will find them in IB, corporate development, equity research, FP and A included. The analyst in financial modelling and corporate finance generally use the models where the three financial statements form the foundation and further advanced models are layered onto these to provide the DCF model, planning models, M and A models or LBO models. This is an important skill you best learn in a Financial Analyst Course.

Make PowerPoint presentations:
The FAs use Microsoft Excel PowerPoint and other graphic-tools like bar graphs, comparison tables, and charts to make their financial statements clear even to laymen. This is the basis of the pitch-books and presentations of the management on which critical decisions are based.

Generate comprehensive reports:
Dashboards, internal reports, presenting KPIs, tracking and monitoring budgets the budgeted and actual are part and parcel of the daily FAs tasks. These are crucial to the client for decision making and should be easy to understand, well-presented, accurate, timely, and full of helpful insights.

Why do the Financial Analyst Course?

The degree at Imarticus Learning is attractive because they offer the latest in technology and skills while training you in a very short period. They use the latest practical learning tools of using project work, assignments, sufficient assignments, tests, hands-on practice and bootcamps to reinforce your learning.

They integrate modules in resume writing, mock interviews, soft-skill development, and personality development while offering convenient timings and modes for professionals and career makers. Their wide range of subjects offered is specific and need-based depending on the training skills required for making a career in financial analysis.

Conclusion:
The FA has many daily tasks and his role involves financial numbers crunching and a host of other technical, financial and presentation skills. His insights, forecasts and predictions help the management take crucial decisions regarding budgets, expenses, resources and its allocation.

The role is in high demand and pays well. You can do a Financial Analyst Course at the Imarticus Learning Academy and emerge a well-rounded practically skilled financial analyst with assured placements. Why wait?

What Do You Need to Become a Financial Analyst?

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One of the most coveted jobs that companies look for is financial analysts. They are sometimes misconstrued as working with bond or stock markets to help their higher employers make certain investments. A company can hire analysts for numerical data so that they can suggest better marketing techniques.

Businesses which utilize a franchise model employ financial analysts to track and tackle franchises within a particular region.

It is the job of the analyst to understand what the strengths and weaknesses are and through it, make forecasts from a monetary perspective. If you’re someone looking to become a financial analyst, here are some of the necessary skills and education you need:

Education and Skills To Become Financial Analyst

Financial analysts need to have a structured qualification and there aren’t any minimums for the career-wise education. A Bachelor’s degree in statistics, economics or finance is a compulsory requirement and other majors that are favorable include math and accounting.

Engineers too are preferred given their analytical way of thinking, which is a necessity in the world of financial analysis. If you’re smart enough to get a degree from a good Undergraduate college, you will have opportunities for great jobs right off college.

Getting an MBA degree is also an added advantage and these graduates are generally hired to work as senior analysts right after they’re done with college. A good career as a financial analyst requires you to have robust quantitative skills, logical skill in different situations, good problem-solving ability and communication skills that are above average.

There is a lot of number crunching that needs to be done if you’re a financial analyst, as analysts have to report to their superiors and help them understand the data in a concise manner.

Different types of analysts:

There are many types of analysts in the world of finance and it is important that you understand the sector you wish to join. There are generally three categories within the field of analysts, including:

  • Seller side
  • Investment banks
  • Buyer side

Analysts also work for regional and local banks, real estate brokers, insurance companies in addition to companies that depend on data. Data is one of the most important drivers of any company’s business and having good financial analysts helps them understand the business much better. A good financial analyst will predict risks well in advance and help companies save their money by preventing them from making rash financial decisions.

The different types of analysts required in the world of finance make this a lucrative option as it is a job that will never go out of fashion. Ensure you get a good qualification as this acts as a good marker regarding your ability as an analyst.

Overall, financial analysts are promised a life of security and comfort in addition to working with some of the biggest companies in the world if they are extremely good at what they do. Imarticus allows you to get a strong financial analyst course and receive the financial analyst certification, so start right away!

Which Are Some of The Good Books On Financial Analysis For The Purpose Of Equity Valuation?

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Pursuing a financial analysis course, currently working in the finance team of a firm or looking to make a career in the finance domain- it is important to gain complete knowledge of valuation and finance before working in the market. There are undoubtedly many sources to learn about valuation, however, if you prefer reading a book rather than attending a seminar or webinar, then here is a list of top books on valuation.

1. The Intelligent Investor by Benjamin Graham
Long considered as one of the most important books written on investing and valuation, the book has great quotes from the author that motivate you into a career in finance. If you have enrolled in a Financial Analyst Certification course, then this book is a must read to enlighten you about the strategies that will help you reach your goals.

The concepts of value investing are explained in detail and most aspects of technical trading have been covered in the book. The book is the Bible of Finance and must adorn your bookshelf if you are thorough finance professional.

2. Theory of Investment Value by John Burr Williams
The book first printed in 1938, revolves around the idea that stocks are worth the present value of the dividends that are paid perpetually. The book highlights the investment value of a stock as the net present value of the future dividends it will reap. It features the highly popular, Discounted Cash Flow technique, which is the edifice of business valuation whilst making investment decisions. Warren Buffet, the reputed investor was highly impressed by the book and the book features two major principles- the intrinsic value of a business can be taken out of discounted value during the course of its lifetime and a business that can afford to invest it’s earning at a higher rate than the applied discounted rate if it can afford to.
3. Measuring and Managing the Value of Companies by McKinsey & Company Inc
One of the best guides for corporate valuation, the book has been co-authored by Tim Koller, Marc Goedhart and David Wessels. The book solidifies the proven principles of value creation by negating the myths that prevail in the financial world.

The book equips executives to make a value-creating decision with case studies that analyze the historical performance of a company and then redrafting it to take a closer look at the performance. The book covers the topics of linking a company’s valuation multiples and estimating the cost of capital with practical tips. A must-have for investment bankers and investors to make pragmatic decisions.
4. Damodaran on Valuation: Security Analysis for Investment and Corporate Finance by Aswath Damodaran
A gifted professor and an authority on valuation, Aswath Damodaran delves deeply into three basic approaches to valuation which are discounted cash flow valuation, relative valuation, and contingent claim valuation. The book is filled with real-time examples of many international firms that deepen your understanding of the advantages and disadvantages of every model to help reader’s judge complex valuation scenarios.

5. Equity Asset Valuation by John Stowe
The book is a good read because of its coverage of finance and accounting concepts with every topic treated in detail for the benefit of the reader. It is good for students who want to strengthen their concepts of valuation before stepping into the finance domain. Most examples used to make it useful for finance students to learn the concept of implementing intrinsic stock valuation.

How Do You Become a Financial Controller?

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Are you great with number crunching and have excellent organizational skills, then this job should be what you are aiming at! A financial controller makes the most important decisions in the business with regard to the finances of the company. A trustworthy job as you will be handed the financial reins of the control of inflow and outflow of cash, you will definitely see the positive impact that your hard work will make on the company’s turnover and growth.
Some previous experience as an accountant or in a similar role of managing finance is a prerequisite to be considered for the job of a financial controller. The job demands a high level of knowledge, skill, dexterity, confidence, responsibility, and accountability. If this sounds like the path, you want to take read on to find out more about the roles and responsibilities, prerequisites, salary, hours of work and more.
What does a Financial Controller’s job entail? Are you cut out to embark on a career in that domain. Well as a financial controller you will be responsible for the accounting operations of the company and reporting to the Finance Director. Preparing financial reports, documenting accounts, corporate accounting, budgeting, forecasting- you will be involved in every aspect of the organization that remotely requires money. You will be managing the financial transactions of a company right from accounts payable to payroll. Irrespective of which industry you work in- every company needs a Mathematics wizard to manage their finances and with an interest and a financial analyst course you could be on the right path to becoming a Financial Controller.
You could complete a finance or accounting degree for e.g., Bachelors in Commerce or Bachelors in Business Management with a specialization in finance which would take you about years. You could also earn a Master’s degree to have an added advantage. If you do not want to take the university route, you can learn by enrolling in a Financial Analyst certification course offered online. Your employer may fund this for you while you train to become an accountant, and then you can work your way up the ladder. Financial Analysis courses in Hyderabad offer great study options for those who want to move progressively towards becoming a Financial Controller.
There is good news for those aiming to be Financial Controllers- it is a typical 9-5 job with weekends and bank holidays to yourself depending on the organization. Qualified financial controllers can earn anywhere between Rs 15,00,000 – Rs 35,00,000. The range could be higher depending on the size of the company and the experience of the candidate.
Once you gain a degree or even experience in accounting or a financial position, it is important to leverage your expertise and build your supervisory skills to become a Financial Controller. Being in control of finance means solving complex issues, dealing with pressurizing situations with an analytical mind. It is important to be exceptionally organised to meet deadlines and comply with regulations. Your primary responsibility will be to see the “bigger picture” and the financial health of the organization rather than just day-to-day numbers.
If you have your sights set on this role, then just get yourself a role in accounting or finance, get certified with a qualification, work hard and learn the ropes to prove yourself worthy of single-handedly managing the funds of a company.

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

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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 Is The Best Tool For Financial Analysis

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It is the job of the financial analyst to use data from the company’s financial statements and records to understand and analyze the strengths, weaknesses and financial position of the company. For example, debts being serviced, the revenue stream flow, capital investments and current position to invest, operational efficiency, future profits and more.

The Following Are Essential to Financial Analysts.

1. Financial statements:
The company income statement and balance sheets reflect the losses or profits over a time period. The assets, liabilities, capital position and such data are crucial to plan and ensure success.

2. Working Capital Statement:
Changes in the working capital can be tracked from the current liabilities and assets in comparison to the previous year. This is a crucial decision making factor in planning and evaluation.

3. Comparative statements:
Size statements of multiple companies at any point helps with understanding the current position vis-à-vis the industry.

4. Analysis of ratios:
This is a great way to arrive at the asset management, debt management, liquidity, market value, profitability, and financial performance of the various departments and business parts.

Why tools help:

Data is the backbone, and a lot depends on the type of decision-making involved, the inferences drawn from data in the financial records and how you analyze the information and use it for constructive feedback and financial analysis. The software used is a crucial tool and should provide customizable, clear and concise analysis.

Popular Software for Financial Analysts:

Of the many software, the Stock Screener by Finviz and Customized Financial Analysis by BizBench are popular with investors. Cloud tools for management, reporting software, etc. are widely used by accountants and bookkeepers, and Managers/ analysts favor SWOT analysis providing the software.

Software like Balanced Scorecard can help assess the current position, overall return, capital financing, operating income, analysis of specific firm processes and performance history.

EPM Financial Reporting by Prevision is also popular and rated high as a tool for management of enterprises, report books maintenance and for being able to analyze and combine real-time data from IT with information on accounting.

SAS, QlikView, and MATLAB are preferred for financial analysis that is customizable and includes tools for statistical analysis in its sophisticated software. It is an excellent tool for traders, analysts, and programmers.
Microsoft Excel and its VBA macro tool is the foundational tool for beginners and those who use small and less complex functions.

In conclusion, if you have a flair for financial analysis, then the financial analysis course in Hyderabad can get you the coveted financial analyst certification. The financial analyst course teaches you the best tools for assessing the company’s weaknesses, strengths, and financial strength. Doing such courses at Imarticus 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.

Do financial analysts use Python? In what ways?

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Finance professionals have long relied on the trawling through spreadsheets which makes their exercise an extremely arduous task. However, over the years they have had access to VBA( Visual Basic Applications) in Excel to customize functionality and automate worksheets.
Google sheets have also proved to be a great contender for managing data on spreadsheets with Google Apps Script being a great addition to the option available. However, the Python programming language is now gaining a lot of popularity in the field with several financial giants like Citigroup offering Python certification and coding classes for their trainee financial analysts, traders and banking professionals.
Python has become one of the most popular programming languages in financial organizations owing to its simplicity, robust modeling capabilities and research ability for analysts, traders and researches. Python has inbuilt applications for every aspect in finance ranging from risk management to cryptocurrencies. A great addition to the financial toolbox of finance professionals, Python certification can be gained by professionals who have enrolled in a Financial Analyst course to enhance their skills and expertise at work.
Financial Analyst course
What makes Python such a great technology especially for finance professionals?
Several traits of Python make is a great choice for financial professionals. Although, here is a list of the most important ones:

  1. Simple and flexible

Easy to write and implement, it is a perfect choice for handling financial services applications that are complex. The syntax is simple and enhances the speed of helping organizations to build software to integrate with their products. It also reduces the rate of errors when developing products in the finance sector that fall under high regulations.

  1. Develops Minimal Viable Product (MVP) faster

The financial services sector needs to be agile and responsive to its customers. Using Python in combination with frameworks like Django, developers can get hold of MVP of products and services to create flawless products

  1. Bridges the gap between data science and economics

Python simplifies calculations for a finance professional with its simplicity and practicality in creating formulas and algorithms to integrate the work of economists in the Python platform.

  1. Source of libraries and tools

Python lets developers build tools from at any stage saving a lot of time and money. Python libraries help in integration of products giving organizations a competitive advantage.
How do finance companies and analysts use Python?
It is already known that Python comes in handy for finance professionals in a broad range of applications. The most popular use of language is as follows:

  1. Banking software

Venmo, Stripe, Zopa, etc are some great banking platforms that finance organizations and banks have built for payment solutions and online banking services with Python. The simplicity and flexibility of Python help banks to develop software for ATM machines to enhance payment processes.

  1. Analytics tools

Python is a great tool for processing and analyzing large sets of data. Libraries such as Pandas help to simplify the data visualization process and carry sophisticated calculations to reveal a deep picture. Scikit or PyBrain are other libraries that have powerful machine learning algorithms to help in predictive analytics for financial analysts.

  1. Cryptocurrency

Businesses that sell cryptocurrency need a tool to conduct a market analysis to predict trends and patterns. Python has a data science ecosystem called Anaconda that helps developers to carry out cryptocurrency pricing and analyze the trends. Most web applications that deal with cryptocurrency use Python to build their products.

  1. Trading

Stock markets create large amounts of data that requires analysis again to get generate reports on the economic scenario. Developers use Python to create solutions that nail down the best strategies to offer the best solutions to trade.
Python is a clear programming language with a simple syntax and a good ecosystem that helps the development process of any financial activity. So those with a Financial Analyst Certification could benefit from the knowledge of Python as they will be able to integrate their knowledge to develop and work on Python-based tools in their job.

Also Read: Does Financial Analyst Need SQL

How do Financial Analysts perform research?

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How do Financial Analysts perform research?

The research analysts cull data from financial statements of the company and PIB/ public information documents to value and estimate forward the companies’ growth and financial indices. They also manage investments, portfolios, funds and provide risk estimates.
Research methodology:
Investment Banking:
All data for financial analysis of public companies can be found in their filings and PIB documents.
A. Firstly the list of documents is created. They include:

  • General information like data available from  Bloomberg, Capital IQ,  FactSet, and others.
  • Annual report.
  • The Prospectus.
  • Form 10-Q.
  • Proxy company shareholders and shares statement.
  • Form 10-K.
  • Equity research sell-side reports.
  • Structure of ownership.
  • Company News over 6 months from PIB or website.

B. The next step is to create the profile including company overview, financial overview, market statistics, statements, projections, the performance of stock price, leadership and ownership details, products, and more to give a fair understanding of the company, its segment, performance over the year, important events, etc.
C. Specific information analysis is then conducted.
Ex: For acquisition analysis

  • Fit determination for industry, size, technology, etc.
  • Potential like personnel talent, growth prospects and so on.
  • Financial parameters like leverage, share dilution/accretion, market views, etc.
  • Legal constraints involved etc.

Once the idea has been vetted the availability of the target is considered.
Availability signs are

  • Owners looking to sell.
  • Under-performance.
  • Large capital needs.
  • Discontent among shareholders.
  • Lack of Management talent.

Lack of availability signs are

  • Insider control.
  • No liquidity needs.
  • Succession strategy being family or clear.
  • Majority share owner being a company benefited by holding.
  • Excellent financial parameters and performance.
  • The parent company is the best choice.

D. The last step is to create the financial models for the merger, LBO, DCF, prior records of transactions, comparable companies and such to suggest and explain a strategic purchase price.
Hedge Funds:
Here quantitative analyses are not very cumbersome and are mainly to determine the risk assessment and justify current market and stock prices.
Ex: While looking to value-invest in a company trading at six times the earnings P/E prices involves a lot of reading and inferences drawn from such reading of PIB. Based on such inferences one will justify not investing if reasons presented in the dissertation are

  • Options of restructuring are too late.
  • The rate of decline in costs is lower than the falling rate of revenues.
  • Insider shareholders selling.
  • Single-party control.
  • Decline in earnings
  • Negative perceptions in the market.
  • Reliance on revenue from governmental earnings.

The models required would be transactional and competitive and DCF if applicable.
Private-equity:
This is very similar to investment banking research process with the exception of financial indices of PE like yield from FCF and leverage.
On a concluding note, one can do financial analyst courses from a reputed institution like Imarticus which provides for a financial analyst certification readily acceptable in the market for jobs and as a career choice par excellence.