Morningstar Research Associate Interview Questions and Answers for Freshers

Attention to Detail
Data Analytics
Logical Reasoning
Verbal and Reading Comprehension

Electic Vehicles and its future in India

Q1. What is Enterprise Value? Ho dop you calculate it?
Ans. 
Enterprise Value is a measure of a company's total value, calculated as market capitalization plus debt, minority interest, and preferred shares, minus total cash and cash equivalents.
• Enterprise Value = Market Capitalization + Total Debt + Minority Interest + Preferred Shares - Total Cash

• It represents the total value of a company's operations and is often used in valuation analysis.

• EV is used to compare companies with ...read more
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Q2. What is the benchmark of EPS?
Ans. 
EPS benchmark is the standard against which a company's earnings per share are compared.
• EPS benchmark varies by industry and company size

• Common benchmarks include industry averages, historical performance, and analyst estimates

• Investors use EPS benchmarks to evaluate a company's profitability and growth potential
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Q1. Basic questions about Valuation and Financial Statement mechanics
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Q2. How past experience is relavant in current role
Ans. 
Past experience is relevant in the current role as it provides valuable skills, knowledge, and insights that can be applied to the job.
• Past experience helps in understanding the industry and its dynamics.

• It provides a foundation of skills and knowledge that can be built upon.

• Past experience helps in making informed decisions and solving problems effectively.

• It allows for the application of lessons learned from previous...read more
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Q1. What is the Salary Expectation
Ans. 
I would expect a salary that is competitive and reflective of my skills and experience.
• Research the average salary range for similar positions in the industry and location

• Consider your qualifications, experience, and the value you bring to the role

• Be prepared to negotiate and discuss benefits and perks in addition to base salary

• Avoid giving a specific number unless necessary, focus on the overall package
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Q1. How will you measure credit worthiness of a company
Ans. 
Credit worthiness of a company can be measured by analyzing financial statements, credit history, industry trends, and management quality.
• Review financial statements such as balance sheet, income statement, and cash flow statement to assess profitability, liquidity, and leverage.

• Check credit history including payment history, outstanding debts, and credit utilization ratio.

• Evaluate industry trends and economic conditio...read more
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Q2. How many profits are there in income statement
Ans. 
There are two types of profits in an income statement: gross profit and net profit.
• Gross profit is the difference between revenue and the cost of goods sold.

• Net profit is the remaining amount after deducting all expenses from the gross profit.

• Both profits are important indicators of a company's financial performance.
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Q3. Which profit will you take in to consideration for giving loan to a company
Ans. 
The profit considered for giving a loan to a company includes net profit, operating profit, and EBITDA.
• Net profit: Indicates the overall profitability of the company after all expenses are deducted from revenue.

• Operating profit: Shows the profit from the core business operations before interest and taxes.

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Reflects the company's operating performan...read more
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Q4. What will be the effect in cost of goods sold if a company has bought raw materials in cheaper rate
Ans. 
The cost of goods sold will decrease if a company buys raw materials at a cheaper rate.
• Lower cost of raw materials will lead to lower cost of goods sold

• Increased profit margin due to cost savings

• Competitive advantage in pricing products
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Q5. Colgate company has a 40% increase in their ssale, what can be the reason? ans --- due to merger with other company by which they get merged companies cutomers
Ans. 
The 40% increase in sales for Colgate could be due to a merger with another company, resulting in access to new customers.
• Mergers can lead to an increase in market share and customer base.

• Access to new distribution channels and markets can boost sales.

• Synergies from combining resources and expertise can drive growth.

• Increased brand recognition and loyalty from customers of the merged company can contribute to higher sa
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