10+ FactSet Equity Research Analyst Interview Questions and Answers

Answers to various questions related to finance and accounting.

• Financial statements include balance sheet, income statement, and cash flow statement.

• Shares represent ownership in a company, while debentures are a form of debt.

• Cash flow statement helps in analyzing the cash inflows and outflows of a company.

• Non-performing assets are loans or advances that are not generating income for the bank.

• Derivatives are financial instruments whose value is derived from an underlying asse...read more

The 5 financial statements are income statement, balance sheet, cash flow statement, shareholders' equity statement, and currency translation and exchange.

• Income statement shows a company's revenues and expenses over a period of time.

• Balance sheet provides a snapshot of a company's financial position at a specific point in time.

• Cash flow statement shows how cash is generated and used by a company.

• Shareholders' equity statement shows the changes in equity of shareholders over ...read more

Public companies are listed on stock exchanges and have shares available for public trading, while private companies are not listed and have limited shareholders.

• Public companies have shares that are traded on stock exchanges, allowing for public ownership and trading.

• Private companies are not listed on stock exchanges and have limited shareholders, often including founders, employees, and private investors.

• Public companies are required to disclose financial information to th...read more

Depreciation is for tangible assets like buildings and machinery, while amortization is for intangible assets like patents and copyrights.

• Depreciation is the allocation of the cost of tangible assets over their useful life.

• Amortization is the allocation of the cost of intangible assets over their useful life.

• Depreciation is typically used for assets like buildings, machinery, and vehicles.

• Amortization is typically used for assets like patents, copyrights, and trademarks.

Types of ratios include profitability, liquidity, solvency, and efficiency ratios with formulas to analyze financial performance.

• Profitability ratios measure a company's ability to generate profit, such as Return on Equity (ROE) = Net Income / Shareholder's Equity.

• Liquidity ratios assess a company's ability to meet short-term obligations, like Current Ratio = Current Assets / Current Liabilities.

• Solvency ratios evaluate a company's long-term financial health, for example Debt...read more

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance.

• EBITDA is calculated by adding back interest, taxes, depreciation, and amortization to net income.

• It is used to analyze and compare profitability between companies and industries.

• EBITDA provides a clearer picture of a company's financial health by excluding non-operating expenses.

• Investors often use EBITDA to assess a company's ability to gen...read more

Tangible assets are physical assets that have a quantifiable value and can be seen or touched.

• Tangible assets include property, plant, equipment, inventory, and vehicles.

• These assets are used in the operations of a business and are recorded on the balance sheet.

• Tangible assets can be depreciated over time to reflect their decreasing value.

• Examples of tangible assets include buildings, machinery, and land.

• Tangible assets are different from intangible assets like patents or tra...read more

Financial statements are reports that provide information about a company's financial performance and position.

• Financial statements include the income statement, balance sheet, and cash flow statement.

• The income statement shows a company's revenues, expenses, and profits over a specific period of time.

• The balance sheet provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time.

• The cash flow statement shows how cash is generate...read more

Ratio analysis is a method of evaluating a company's financial performance by analyzing relationships between various financial variables.

• Ratio analysis involves comparing different financial ratios to assess a company's profitability, liquidity, efficiency, and solvency.

• Common ratios used in ratio analysis include the debt-to-equity ratio, return on equity, current ratio, and gross margin ratio.

• By analyzing these ratios, investors and analysts can gain insights into a compan...read more