Morningstar Data Research Analyst Interview Questions, Process, and Tips

PE ratio is a financial metric used to assess the valuation of a company's stock by comparing its market price to its earnings per share.

• PE ratio is calculated by dividing the market price per share by the earnings per share.

• It helps investors determine if a stock is overvalued or undervalued.

• A high PE ratio suggests that investors have high expectations for future earnings growth.

• A low PE ratio may indicate that the s...read more

Operational lease is short-term and used for equipment rental, while financial lease is long-term and used for asset financing.

• Operational lease is like renting equipment for a short period of time

• Financial lease is like financing an asset for a longer period of time

• Operational lease is usually cheaper and has lower risk

• Financial lease is usually more expensive and has higher risk

• Operational lease is not recorded on ba...read more

The balance sheet, income statement, and cash flow statement are interconnected financial statements that provide a comprehensive view of a company's financial performance.

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

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

• The cash flow statement shows the inflows a...read more

Issued shares are the total number of shares a company has authorized and distributed, while outstanding shares are the shares held by shareholders.

• Issued shares refer to the total number of shares a company has authorized and distributed to shareholders.

• Outstanding shares are the shares held by shareholders, excluding treasury shares and shares held by insiders.

• Issued shares can include both outstanding shares and tre...read more

The 3 financial statements are interrelated and provide different perspectives of a company's financial performance.

• The income statement shows the company's revenues, expenses, and net income for a specific period.

• The balance sheet shows the company's assets, liabilities, and equity at a specific point in time.

• The cash flow statement shows the company's cash inflows and outflows for a specific period.

• The net income fro...read more