300+ Research Analyst Interview Questions and Answers

Income statement, net profit, stock split, merger, takeover, depreciation, amortization, net worth, retaining earnings, book value per share, types of equity shares.

• Income statement shows a company's revenue and expenses over a period of time.

• Net profit is calculated by subtracting total expenses from total revenue.

• Stock split is when a company increases the number of shares outstanding by issuing more shares to current shareholders.

• Merger is when two companies combine to for...read more

Fixed income securities provide a fixed return while variable income securities provide a return that fluctuates based on market conditions.

• Fixed income securities provide a fixed rate of return, such as bonds or CDs

• Variable income securities provide a return that fluctuates based on market conditions, such as stocks or mutual funds

• Fixed income securities are generally considered less risky than variable income securities

• Investors may choose to diversify their portfolio with ...read more

Yes, I am familiar with LinkedIn and know how to check prospects on the platform.

• I understand the importance of LinkedIn in professional networking and research.

• To check a prospect, I would search for their name or company in the search bar and review their profile for relevant information.

• I would also look for mutual connections or groups to gain additional insights.

• I am aware of LinkedIn's premium features for more advanced prospecting and lead generation.

• For example, I hav...read more

Factset is a financial data and software company that provides research, analytics, and data solutions to investment professionals.

• Factset offers a wide range of financial data and analytics tools

• It provides real-time market data, news, and research reports

• Factset's software platforms help investment professionals in portfolio management, risk analysis, and quantitative research

• The company serves clients in the financial industry, including asset managers, investment banks, a...read more

Fact entry data solution is a software that helps in collecting and organizing data for research purposes.

• The solution is designed to streamline the data entry process for research studies

• It allows for easy data collection and organization

• The software can be customized to fit the specific needs of a research project

• Fact entry data solution has been used in various research studies across different industries

Valuing a hotel company involves analyzing its financial statements, market trends, and competitive landscape.

• Analyze the company's financial statements, including revenue, expenses, and profit margins

• Research market trends and demand for hotel services in the company's location

• Assess the competitive landscape and the company's market share

• Consider the company's brand reputation and customer satisfaction ratings

• Evaluate the company's growth potential and future prospects

• Compa...read more

The questions asked in the interview were about the differences between list and dictionary, quality and quantity, reasons for joining the company, and expectations from the company.

• List is an ordered collection of elements, while dictionary is an unordered collection of key-value pairs.

• List elements are accessed by their index, while dictionary elements are accessed by their keys.

• Quality refers to the standard or excellence of something, while quantity refers to the amount o...read more

Private equity invests in established companies while venture capital invests in startups.

• Private equity firms invest in mature companies with a proven track record.

• Venture capital firms invest in startups with high growth potential.

• Private equity firms typically acquire a controlling stake in the company they invest in.

• Venture capital firms usually take a minority stake in the company.

• Private equity firms focus on generating returns through operational improvements and cost-...read more

Explanation of Blockchain, Full/Half Duplexing, Client/Server side, Cryptocurrency, Mobile Switching, Transistors, Diodes, and upcoming tech trends.

• Blockchain is a decentralized digital ledger that records transactions in a secure and transparent manner.

• Full duplexing allows for simultaneous two-way communication, while half duplexing only allows for one-way communication at a time.

• Client side refers to the user interface of a software application, while server side refers to...read more

Annual reports contain more than just financials, such as management discussion and analysis, corporate governance, and sustainability reports.

• Management discussion and analysis provides insights into the company's strategy, operations, and future plans.

• Corporate governance section highlights the company's policies and practices related to ethical conduct, board composition, and executive compensation.

• Sustainability reports showcase the company's efforts towards environmental...read more

Types of accounts and golden rules of accounts

• Types of accounts include assets, liabilities, equity, revenue, and expenses

• Golden rules of accounts are based on the accounting equation: Assets = Liabilities + Equity

• The golden rules are: Debit what comes in and credit what goes out, Debit the receiver and credit the giver, Debit all expenses and losses and credit all incomes and gains

Accumulated depreciation is the total amount of depreciation expense that has been recorded for an asset over its useful life.

• It is a contra-asset account that reduces the value of an asset on the balance sheet.

• It is calculated by subtracting the asset's salvage value from its original cost and dividing the result by the asset's useful life.

• It represents the total amount of wear and tear or obsolescence that an asset has undergone over time.

• It is important for calculating the...read more

Assess market attractiveness by analyzing market size, growth rate, competition, customer needs, and trends.

• Analyze market size and growth rate to determine potential revenue

• Evaluate competition to identify market share and differentiation opportunities

• Understand customer needs and preferences to tailor offerings

• Identify trends and potential disruptors to stay ahead of the curve

• Consider regulatory and economic factors that may impact the market

• Use frameworks such as SWOT anal...read more

Explaining name reactions, acid and bases, and pH in detail with examples and mechanisms.

• Name reactions are organic chemical reactions named after their discoverers or developers.

• Examples of name reactions include the Grignard reaction, Friedel-Crafts reaction, and Diels-Alder reaction.

• Acids are substances that donate hydrogen ions, while bases are substances that accept hydrogen ions.

• The pH scale measures the acidity or basicity of a solution, with a pH of 7 being neutral.

• My...read more

Research Analysts require strong analytical, critical thinking, and communication skills.

• Strong analytical skills to collect and analyze data

• Critical thinking skills to interpret data and draw conclusions

• Excellent communication skills to present findings and recommendations

• Proficiency in statistical analysis software and tools

• Ability to work independently and as part of a team

• Attention to detail and accuracy

• Knowledge of research methodologies and techniques

• Flexibility and ada...read more

Valuing a company with no cash profit requires alternative methods such as discounted cash flow or comparable company analysis.

• Use discounted cash flow method to estimate future cash flows and discount them to present value

• Perform comparable company analysis by comparing the company to similar ones in the industry

• Consider the company's assets and liabilities to determine its net worth

• Evaluate the company's potential for future growth and profitability

• Look at the company's rev...read more

Yes, I am familiar with the shortcut keys of Excel.

• Ctrl + C: Copy

• Ctrl + V: Paste

• Ctrl + X: Cut

• Ctrl + Z: Undo

• Ctrl + Y: Redo

• Ctrl + B: Bold

• Ctrl + U: Underline

• Ctrl + I: Italic

• Ctrl + F: Find

• Ctrl + H: Replace

I would search for hospitals with gastroenterology departments and high patient satisfaction ratings.

• Search for hospitals with gastroenterology departments on their website or through online directories.

• Check patient satisfaction ratings on websites like Healthgrades or Yelp.

• Consider hospitals with high rankings in gastroenterology specialties on websites like US News & World Report.

• Look for hospitals with positive reviews from patients with similar conditions on online forum...read more

If USD1 equals INR1, it will impact the Indian economy by affecting exports, imports, inflation, and foreign investments.

• Exports will become expensive, making Indian goods less competitive in the global market.

• Imports will become cheaper, leading to increased demand for foreign goods.

• Inflation may rise due to increased demand for foreign goods and higher import costs for raw materials.

• Foreign investments may decrease as the Indian economy becomes less attractive due to the we...read more

Semi-variable costs have both fixed and variable components, while variable costs change proportionally with output.

• Semi-variable costs have a fixed portion that remains constant regardless of output, and a variable portion that changes with output.

• Examples of semi-variable costs include utilities, phone bills, and maintenance costs.

• Variable costs change proportionally with output, such as direct materials and labor costs.

• Understanding the difference between these costs is im...read more

Provision is a charge against profits, while reserves are profits set aside for future use.

• Provision is an estimated expense, while reserves are a part of profits.

• Provision is a charge against profits, while reserves are a part of equity.

• Provision is a liability, while reserves are an asset.

• Examples of provisions include bad debts, warranties, and taxes, while examples of reserves include general reserves, contingency reserves, and capital reserves.

Depreciation reduces net income and increases cash flow.

• Depreciation is a non-cash expense that reduces net income.

• Since it is a non-cash expense, it is added back to net income in the cash flow statement.

• This results in an increase in cash flow from operating activities.

• For example, if a company has a net income of $100,000 and depreciation expense of $20,000, the cash flow from operating activities would be $120,000.

• Depreciation also affects cash flow from investing activit...read more

I will use various tools such as LinkedIn Sales Navigator, ZoomInfo, and Hunter.io to find prospects.

• Use LinkedIn Sales Navigator to search for prospects based on job title, industry, and location.

• Use ZoomInfo to find contact information for prospects and verify their job titles and company information.

• Use Hunter.io to find email addresses for prospects and verify their email addresses.

• Use Google search and social media platforms to find additional information about prospects...read more

To provide a rough analysis of revenue, sales, and expenditure for a company investing in a specific sector in India.

• Analyze the current market size and growth rate of the sector in India

• Evaluate the competitive landscape and market share of existing players

• Assess the regulatory environment and government policies impacting the sector

• Analyze the target company's financial statements, revenue streams, and sales projections

• Evaluate the company's expenditure on operations, marke...read more

Marginal costs refer to the cost of producing one additional unit of a product, while additional costs refer to any extra costs incurred beyond the initial cost.

• Marginal costs are the cost of producing one more unit of a product, while additional costs are any extra costs incurred beyond the initial cost.

• Marginal costs are variable costs that increase or decrease with the production of one more unit, while additional costs can be fixed or variable costs.

• For example, if a comp...read more

The Boeing 737 Max crashes were negative news for Boeing

• The crashes of two Boeing 737 Max planes in 2018 and 2019 resulted in the deaths of 346 people

• The crashes were caused by a faulty automated system that pushed the planes into nosedives

• Boeing's stock price dropped significantly following the crashes and the subsequent grounding of the 737 Max fleet

• The company faced lawsuits, investigations, and a loss of trust from customers and the public

Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.

• Types of derivatives include options, futures, forwards, and swaps.

• Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities.

• Common ratios used in financial analysis include price-to-earnings ratio (P/E), return on equity (ROE), and debt-to-equity ratio.

Approximately 10 million cold drink bottles are consumed in Bangalore per month.

• Population of Bangalore is around 12 million

• Assuming 80% of the population consumes cold drinks

• On average, a person consumes 2 bottles of cold drink per week

• Total number of cold drink bottles per month = 12 million * 0.8 * 2 * 4 = 10 million

I have worked on various technology verticals including software, telecommunications, and e-commerce.

• Software: Estimating market size by analyzing sales data, conducting surveys, and tracking industry trends.

• Telecommunications: Estimating market size by analyzing subscriber data, conducting market research, and studying industry reports.

• E-commerce: Estimating market size by analyzing online sales data, conducting customer surveys, and studying market research reports.

I use WhatsApp frequently throughout the day for both personal and professional communication.

• I use WhatsApp to communicate with friends and family

• I also use it for work-related communication with colleagues and clients

• I check WhatsApp notifications periodically throughout the day

• The number of times I use it varies depending on my workload and personal schedule

Fundamental analysis is a method of evaluating a security by examining its intrinsic value.

• It involves analyzing financial and economic data to determine the underlying value of a security

• The objective is to identify undervalued or overvalued securities

• Factors considered include financial statements, industry trends, management quality, and macroeconomic conditions

• Example: analyzing a company's revenue growth, profit margins, and debt levels to determine its true value

• The goa...read more

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities.

• Types of mutual funds include equity funds, debt funds, balanced funds, index funds, and sector funds.

• Stock split is when a company increases the number of shares outstanding by issuing more shares to current shareholders.

• Ex-dividend is when a stock trades without the dividend payment included in the share price.

• Bonus shares are additional shares giv...read more

I would review the method development process, identify potential errors or issues, and troubleshoot to determine the cause of the discrepancy.

• Review the method development process to ensure all steps were followed correctly

• Check for any potential errors in the experimental setup or data analysis

• Verify the accuracy of the instruments and equipment used

• Consult with colleagues or experts for input and advice

• Perform additional experiments or tests to validate the results

Accrued expenses are liabilities that have been incurred but not yet paid for.

• Accrued expenses are recorded on the balance sheet as a current liability.

• They represent expenses that have been recognized but not yet paid for.

• Examples of accrued expenses include salaries payable, interest payable, and utilities payable.

• Accrued expenses are typically recorded through adjusting entries at the end of an accounting period.

If cigarettes are banned by the government in India, it would have significant social, economic, and health implications.

• Reduction in smoking-related health issues and diseases

• Decrease in tobacco-related deaths

• Positive impact on public health and healthcare costs

• Potential increase in illicit tobacco trade

• Loss of revenue for the government

• Impact on tobacco farmers and related industries

• Changes in social behavior and cultural practices

The exact number of street lights in Pune is not available.

• There is no official data available on the exact number of street lights in Pune.

• The number of street lights may vary depending on the area and population density.

• The Pune Municipal Corporation is responsible for the maintenance of street lights in the city.

• The number of street lights may have increased over the years due to urbanization and population growth.

Bottom-up analysis involves analyzing individual components of a company or industry to form a complete picture.

• Start by analyzing individual companies or industries

• Look at financial statements, market trends, and industry reports

• Use this information to form a complete picture of the industry or market

• Example: Analyzing individual companies in the tech industry to form a complete picture of the industry as a whole

The question asks about calculating cumulative sum of an array and frequency of each word in a sentence.

• To calculate cumulative sum of an array, we can use a loop and keep adding the current element to a running sum variable.

• To calculate frequency of each word in a sentence, we can split the sentence into words and use a dictionary to keep track of the count of each word.

• We can use built-in functions in programming languages like Python to perform these tasks efficiently.

Enterprise Value is the total value of a company's equity and debt.

• Enterprise Value = Market Capitalization + Total Debt - Cash and Cash Equivalents

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

• EV is often used in financial analysis to compare companies with different capital structures

• Example: If a company has a market cap of $100 million, total debt of $50 million, and cash and cash equivalents of $10 million, its EV would be $140 million

Quantitative analysis involves numerical data while qualitative analysis involves non-numerical data.

• Quantitative analysis deals with measurable data and statistical methods.

• Qualitative analysis deals with non-measurable data and subjective methods.

• Quantitative analysis is used to test hypotheses and make predictions.

• Qualitative analysis is used to gain insights and understand complex phenomena.

• Examples of quantitative analysis include surveys, experiments, and statistical mo...read more

Activities in Cash Flow Statement include operating, investing, and financing activities.

• Operating activities involve cash flows from day-to-day business operations, such as sales and expenses.

• Investing activities include cash flows from buying or selling long-term assets, like property or equipment.

• Financing activities involve cash flows related to raising or repaying capital, such as issuing stocks or paying dividends.

• Examples of operating activities: cash received from cus...read more

Provision is a liability that is uncertain in timing or amount, while reserve is a portion of profits set aside for specific purposes.

• Provision is a liability that is recognized in the financial statements when there is uncertainty about the timing or amount of an obligation.

• Reserve is a portion of profits that is set aside by a company for specific purposes, such as future investments, contingencies, or dividends.

• Provisions are made for known liabilities, such as bad debts, ...read more