Is learning financial analysis hard? These 5 tips will make it easier

Being skilled in financial analysis is a dream statement for almost everyone looking to refurbish their resumes or even bring it up in casual conversation. Well, financial analysis is the current hot-selling cake. Everyone you know wants to have a piece of it. So, let us try to decode the meaning of the term.

What is financial analysis?

Simply put, financial analysis is about gaining insights into an organisation’s financial information. No matter your role in your company, it is a highly valued skill. When we say that someone is a master at financial analysis, we mean that they can analyse the company’s financial statements and contextualise them into the broader market space. It further helps the person arrive at strategic business decisions once they have a grip on the numbers. Financial analysis is hence considered to be a top skill when it comes to managerial decision-making.

If you are someone who does not have a background in finance, there is absolutely no reason to worry! There are several methods through which learning this skill can be simplified for you.

Essential skills for practising financial analysis:

Ability to read and interpret financial statements, which include the cash flow statement, income statement and the balance sheet
Each of these statements carries information vital to understanding the financial health of the organisation
Computation of critical financial ratios which come in handy to compare trends within the same or similar industries
Producing actionable insights through the information presented by the economic data
Comparing the organisation’s position with the growing market trends and positioning forces into action so that future movement can be forecasted

Here are the five tips to make learning financial analysis easier:

Earn a degree in the field of finance:

It is a smart move to have a background in finance if you want to excel in financial analysis. The CFA Course in India is gaining a lot of popularity. The exams for the course are being held locally due to the ongoing pandemic. You can also opt for a Bachelor’s degree in finance or its related field. Chances of landing your dream job may increase after pursuing an MBA or applying for the CFA certification, as it is regarded as the standard gold degree in finance.

Opt for an online course or certificate program:

CFA will provide you with the CFA charter holder after completing four years of work experience in finance. You do not have to worry about attending physical classes as learning in an online certificate program is self-paced. The financial analyst training and placement are facilitated by the financial analysis prodegree, which powers tech-enabled learning. The learning management system (LMS) hosts all the study material on a single platform. You can prepare your schedule and track your learning accordingly.

The financial analyst training and placement program provides end-to-end support through resume building, LinkedIn profile building, and mentorship sessions. You will be job-ready after the completion of the course. Leading industry experts teach the vast curriculum with rich experience working in actual markets. The program is interactive and competitive and will help you build on your quick thinking abilities.

The program includes accounting and financial modelling courses. It also covers valuation and corporate strategy modules along with equity research and M&A. It offers a comprehensive curriculum in terms of learning. The financial analyst training and placement program will assist you in preparing for job interviews and selecting a profile best suited to your skills.

Learning from real-life examples:

The expert faculty holds a significantly impactful experience in the market. On-ground experience is a lot different than learning a skill in the classroom. The financial modelling courses they teach will also come with examples of how it helps them on the job. Real-world examples will guide you to apply the skills and develop your critical thinking abilities.

Gain a hands-on exposure:

The simulations and case studies forming part of the curriculum will help you implement and practise essential concepts. Taking up challenges at work is going to be a routine, so understanding the financial data in-depth and assessing its impact on a company’s performance will help shape you as a financial analyst.

Leveraging your network and participating in finance conferences:

Learning from industry leaders’ experiences is a great way to kickstart and build a career. Make sure you gain financial analysis tips by utilising your professional network well. Hence, ensure that you are enrolling yourself as a part of the financial analyst community.

Conclusion

Financial analysis skills help organisations gain a competitive advantage in the market. Whether deciding on a new hire or assessing the latest market campaign’s impact on the business, financial analysis is needed everywhere. This is by far the best investment you can make for your career. As we can see the country’s rapid growth and demand for financial analysts, the time to learn the skill is now!

To learn more about the financial analyst prodegree, you can contact us through chat support or drive to our training centers in major Indian cities, including Mumbai, Thane, Pune, Chennai, Bengaluru, Delhi, Gurgaon, and Ahmedabad.

In today’s era, financial decisions by businesses and investors are taken only after conducting proper research. Financial decisions can include investing in a company or opting out of a share/stock. There is no limit to financial decisions that can be encountered by businesses and investors.

To decide whether a financial decision is beneficial or not, equity research is performed. You can also build your career as an equity research analyst and work with the top organizations. Read on to know more about making a career as an equity research analyst.

Understanding the role of an equity researcher

An equity researcher is responsible for carrying out an analysis of a firm, stock, or any other type of financial entity. The information produced by equity researchers is then used by investment banks, shareholders, and companies to make better financial decisions.

For example, investors perform equity research to know which investment ventures will provide a huge return in the future. Companies value a project with the aid of equity research to make sure it is beneficial. In short, equity research is the valuation of a company or a venture/project.

An equity research analyst performs the following tasks for its organization/client:

An equity researcher has to develop a company portfolio that will be used to generate capital from investors. Company portfolio will be the ideal documents used in investment meetings and IPOs.
An equity researcher develops financial models and calculates the estimated income, cash flow, revenue, and returns of capital.
An equity researcher monitors the market situation continuously and provides updated reports to investors. Based on the generated reports, investors can then make better decisions.
An equity researcher evaluates the financial position of the firm in comparison to its competitors. This also predicts the growth of a company based on current performance and trends.

How to become an equity researcher?

You will have to learn the basic skills of financial analysis and modeling to become a successful equity researcher. Colleges in India do not offer a designated course for equity research. It can be included as a subject/topic in a traditional college course. For learning financial analysis, you may have to opt for the complete degree program. Also, the recent COVID pandemic has made it tough for colleges in India to conduct classes.

Nowadays, students are leaning towards EdTech platforms for financial analysis courses. You need to select an industry-oriented financial analysis course that could make you job-ready. Imarticus Learning is a reliable source that can help you in building a successful career as an equity researcher.

Why choose the financial analysis course from Imarticus?

The Financial Analysis Prodegree offered by Imarticus is endorsed by KPMG, a leading accounting firm in the country. The pros of choosing the financial analysis course of Imarticus are listed below:

This course will help you in an easy career transition and will make you job-ready. Imarticus has successfully transformed the career of more than 2400 enthusiasts.
Six real-world projects offered by this course to students make it one of the best financial modeling courses in India.
A KPMG-endorsed curriculum will ensure that you learn the job-relevant skills and common practices in the industry.
Most of the financial modeling courses do not provide tech-enabled learning. This course will also introduce you to the tools and technologies used by equity researchers in the industry.

Conclusion

Imarticus will help you in learning the concepts of equity research from industry experts. With a practical learning approach, you will learn equity research techniques by performing them in real life. You will obtain industry certifications during this course that will enhance your credibility as an equity researcher.

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