Finance Planning and Analysis Manager

Finance Planning and Analysis Manager Interview Questions and Answers

Updated 26 Dec 2024

Q1. Difference between working capital and cash flows and why this is important for the company.

Ans.

Working capital is the difference between current assets and current liabilities, while cash flows represent the movement of cash in and out of the company.

Working capital is a measure of a company's operational efficiency and short-term financial health.
Cash flows show how much actual cash a company is generating or using in its operations.
Working capital management is crucial for ensuring a company can meet its short-term obligations and invest in growth opportunities.
Cash ...read more

Q2. How will you analyse the your monthly P&L and present a MBR Report to the Management.

Ans.

I will analyze the monthly P&L by reviewing revenue, expenses, variances, and trends, and present a MBR report to management with key insights and recommendations.

Review revenue and expenses to identify variances from budget and previous periods
Analyze trends in key performance indicators such as gross margin, operating income, and net profit
Prepare a summary of findings and key insights for management review
Include recommendations for improving financial performance or addre...read more

Q3. What do you mean by NPV and IRR?

Ans.

NPV stands for Net Present Value, which is the difference between the present value of cash inflows and outflows. IRR stands for Internal Rate of Return, which is the rate at which the net present value of cash flows is zero.

NPV is used to evaluate the profitability of an investment by calculating the present value of expected cash flows and subtracting the initial investment.
IRR is the discount rate that makes the net present value of all cash flows from a particular project...read more

Q4. What is DCF and Free Cash Flows?

Ans.

DCF stands for Discounted Cash Flows, a valuation method used to estimate the value of an investment based on its future cash flows. Free Cash Flows are the cash generated by a company that is available to be distributed to investors.

DCF is a valuation method used to estimate the value of an investment by discounting its future cash flows back to the present value.
Free Cash Flows represent the cash generated by a company after accounting for capital expenditures and working c...read more

Are these interview questions helpful?

Q5. What is Financial planning and analysis

Ans.

Financial planning and analysis involves the process of forecasting, budgeting, and analyzing financial data to support decision-making and strategic planning.

Financial planning and analysis helps organizations in setting financial goals and developing strategies to achieve them.
It involves creating budgets, analyzing financial statements, and conducting variance analysis to assess performance.
Financial planning and analysis also includes forecasting future financial trends a...read more

Q6. difference in forecasting and Budgeting

Ans.

Forecasting involves predicting future financial outcomes based on historical data and trends, while budgeting involves setting financial goals and allocating resources to achieve those goals.

Forecasting uses past data and trends to predict future financial performance.
Budgeting involves setting financial goals and allocating resources to achieve those goals.
Forecasting is more focused on predicting outcomes, while budgeting is more focused on planning and control.
Forecasting...read more

Share interview questions and help millions of jobseekers 🌟

Q7. Three Methods to increase revenue

Ans.

Three methods to increase revenue include expanding product offerings, increasing marketing efforts, and improving customer retention strategies.

Expand product offerings to attract new customers and increase sales
Increase marketing efforts to reach a larger audience and drive more sales
Improve customer retention strategies to encourage repeat business and increase customer lifetime value

Q8. What is revenue

Ans.

Revenue is the income generated from sales of goods or services.

Revenue is the total amount of money a company earns from its normal business activities.
It is calculated by multiplying the price at which goods or services are sold by the number of units sold.
Revenue can come from sales of products, services, subscriptions, advertising, etc.
It is an important metric for assessing a company's financial performance and growth.
Revenue can be influenced by factors such as pricing ...read more