The economy is made up of different segments called sectors. These sectors comprise businesses that provide goods and services to consumers.<\/p>\n
The financial services sector provides financial services to people and corporations. This sector comprises a variety of financial firms, including banks, investment houses, lenders, finance companies, real estate brokers, and insurance companies.<\/p>\n
Here's the difference between Financial Analytics & Financial Analysis.<\/p>\n
Financial analytics is the process of analyzing financial data to make financial decisions. Financial analysts are responsible for both financial reporting and financial forecasting. One of their main tasks is creating a balance sheet, formulating financial strategies, working with financial models, and using financial information to guide decisions. Some Analysts prepare reports to track financial performance against projections at various levels to identify possible problems.<\/p>\n
The financial analysis aims to understand the economic potentials and consequences of various courses of action by analyzing past performance and future expectations concerning financial markets, investments, cash flows, etc., and anticipating impacts on them from alternative measures such as changes in interest rates or regulatory requirements.<\/p>\n
The key difference between financial analysis and financial analytics is that one does not need a deep understanding of mathematics or statistics in financial analysis. On the other hand, in finance, you do need a background knowledge of mathematics\/statistics.<\/p>\n
This means that people who work as financial analysts might rely upon more by their companies. In contrast, someone working with finance will rely upon less because they would have a deeper understanding of what\u2019s going on under the surface.<\/p>\n
- A financial analyst is a financial professional with the skills, experience, and education to perform financial analysis efficiently. They are often required by law or regulation as part of their job description. Financial analysts interpret financial data from financial statements to provide valuable insights about future trends for public corporations, governments, and non-profit organizations.<\/p>\n
- Financial analysis involves making informed decisions based on past performance-financials such as budgets, tax records, or other business transactions collected over time which can be analyzed to give insight into how well they might do at some point in the future if certain factors remain constant. A financial analysis also includes analyzing cash flow and financial ratios, such as return on investment (ROI), to help improve performance.<\/p>\n
- Financial analysts typically use financial statements from past years in the company\u2019s financial reports to predict future economic trends for that company. They examine balance sheets, income statements, other financial records of profitability over time, make predictions over revenues or expenses based on how those numbers have changed up until this point.<\/p>\n
Financial analysts also analyze debt levels & interest rates when predicting whether a specific business venture is likely profitable enough for investors who provide funding.<\/p>\n