Morningstar Equity Research Analyst Interview Questions and Answers

Q1. What is current ratio
Ans. 
Current ratio is a financial ratio that measures a company's ability to pay its short-term obligations.
• Current ratio is calculated by dividing current assets by current liabilities.

• It is used to evaluate a company's liquidity and short-term financial health.

• A ratio of 1 or higher is generally considered good, indicating that the company can meet its short-term obligations.

• However, a very high current ratio may indicate...read more
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Q2. Ratio of current assets and liabilities
Ans. 
The ratio of current assets and liabilities is a measure of a company's ability to pay off its short-term debts.
• Current ratio = current assets / current liabilities

• A ratio of 2:1 or higher is considered healthy

• Low ratio may indicate liquidity issues

• Example: If a company has $100,000 in current assets and $50,000 in current liabilities, its current ratio would be 2:1
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Q1. What is EV and its formulae
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EV stands for Enterprise Value, which is the total value of a company's equity and debt.
• EV = Market Capitalization + Total Debt - Cash and Cash Equivalents

• It is used to determine the total value of a company, including its debt

• EV/EBITDA is a common valuation metric that compares a company's EV to its EBITDA

• EV/Sales is another common valuation metric that compares a company's EV to its annual sales

• EV can be used to comp...read more
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Q2. Format of income statement
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The income statement shows a company's revenues and expenses over a specific period of time.
• The income statement is also known as the profit and loss statement.

• It includes revenues, cost of goods sold, gross profit, operating expenses, and net income.

• Revenues are the money a company earns from selling its products or services.

• Cost of goods sold is the cost of producing or purchasing the products or services sold.

• Gross ...read more
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Q1. Question about Greeks, Valuation and fundamental analysis of Banks
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Q1. Intro about ratings
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Q2. Intro with CBO, basic questing regarding the company
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Q1. Telephonic round with basic questions regarding experience and CV
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Basic finance related question and general k knowledge questions

Q1. About yourself and balance sheet questions
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Q1. Basic English test
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Q1. Liquidity ratios
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Q1. Interest coverage ratio , leverage ratio and many others
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Q2. Related to financial rations and financial analysis
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