KPMG India Financial Analyst Interview Questions and Answers

Equity analysis is the process of evaluating a company's financial performance and potential by examining its stock and financial statements.

• It involves analyzing a company's financial statements, such as balance sheets, income statements, and cash flow statements.

• It also involves examining a company's stock performance, including its price-to-earnings ratio, dividend yield, and market capitalization.

• Equity analysis is used by investors to determine whether a company's stock ...read more

Working capital cost of capital is the cost of financing a company's short-term assets and liabilities.

• Working capital cost of capital is the cost of financing a company's current assets and liabilities

• It is the cost of funds used to finance the day-to-day operations of a business

• It includes the cost of short-term debt, accounts payable, and inventory financing

• The cost of working capital is important to consider when evaluating a company's overall cost of capital

Finance analysis is the process of evaluating financial data to make informed business decisions.

• It involves analyzing financial statements, market trends, and economic indicators.

• It helps in identifying financial risks and opportunities.

• It is used to make investment decisions, assess company performance, and develop financial strategies.

• Examples include ratio analysis, trend analysis, and cash flow analysis.

An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date.

• Options are commonly used in the stock market as a form of derivative trading.

• There are two types of options: call options and put options.

• Call options give the buyer the right to buy the underlying asset at a specific price, while put options give the buyer the right to sell the underlying asset at a specific price...read more

A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time.

• It shows the company's assets, liabilities, and shareholders' equity

• Assets are what the company owns, liabilities are what it owes, and shareholders' equity is the difference between the two

• The balance sheet follows the accounting equation: Assets = Liabilities + Shareholders' Equity

• It helps investors and analysts assess the financial health and stab...read more