300+ Research Analyst Interview Questions and Answers

An equity stock holder is an individual or entity that owns shares of a company's stock.

• Equity stock holders have ownership in a company and are entitled to a portion of its profits.

• They can vote on important company decisions and attend shareholder meetings.

• Examples of equity stock holders include individual investors, mutual funds, and pension funds.

The golden rules of accounting are basic principles that guide the recording of financial transactions.

• The first golden rule is the Personal Account rule, which states that all personal accounts are debited for the receiver and credited for the giver.

• The second golden rule is the Real Account rule, which states that all real accounts are debited for what comes in and credited for what goes out.

• The third golden rule is the Nominal Account rule, which states that all nominal ac...read more

5G offers faster speeds, lower latency, increased capacity, improved reliability, and support for more devices.

• Faster speeds compared to 4G, enabling quicker downloads and smoother streaming

• Lower latency for real-time communication and better gaming experiences

• Increased capacity to handle more connected devices in crowded areas

• Improved reliability for mission-critical applications like autonomous vehicles

• Support for emerging technologies like IoT and virtual reality

I would recommend the healthcare sector to a risk-averse investor.

• Healthcare sector is known for its stability and consistent demand regardless of economic conditions

• Companies in healthcare sector tend to have steady cash flows and strong balance sheets

• Healthcare sector is less sensitive to market fluctuations compared to other sectors

• Examples of healthcare companies: Johnson & Johnson, Pfizer, UnitedHealth Group

Balance sheet, income statement, and cash flow statement are three key financial statements used to assess the financial health of a company.

• Balance sheet provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.

• Income statement shows a company's revenues, expenses, and profits over a specific period of time.

• Cash flow statement tracks the flow of cash in and out of a company, detailing operating, investing, and...read more

I recommended investing in Tesla stock due to their strong financial performance and growth potential.

• Highlighted Tesla's consistent revenue growth and market dominance in the electric vehicle industry

• Emphasized their innovative technology and expansion into new markets

• Pointed out positive analyst forecasts and recommendations for Tesla stock

I would sell a high-quality portable phone charger for under ₹1000 by highlighting its convenience and reliability.

• Highlight the convenience of being able to charge your phone on the go

• Emphasize the reliability of the charger and its compatibility with various devices

• Offer a competitive price point compared to other similar products on the market

Public companies are listed on stock exchanges and their shares are available for purchase by the general public, while private companies are not listed and their shares are not publicly traded.

• Public companies are required to disclose financial information to the public, while private companies are not.

• Public companies are subject to more regulations and oversight from government agencies like the SEC, while private companies have more flexibility in their operations.

• Example...read more

ESG stands for Environmental, Social, and Governance. It is a framework used to evaluate a company's sustainability and ethical practices.

• ESG factors are used by investors to assess a company's long-term financial performance and risk.

• Environmental factors include a company's impact on climate change, natural resource depletion, and pollution.

• Social factors include a company's impact on human rights, labor practices, and community relations.

• Governance factors include a compan...read more

ICH Q1A(R2) guideline is used in stability studies.

• ICH Q1A(R2) guideline provides guidance on stability testing of new drug substances and products.

• It outlines the requirements for conducting stability studies, including testing conditions and storage.

• The guideline also covers the evaluation of stability data and the establishment of shelf life.

• Examples of stability studies include accelerated stability testing and long-term stability testing.

Direct expenses are related to production while indirect expenses are not directly related to production.

• Direct expenses are incurred in the production process and can be easily traced to a product or service.

• Indirect expenses are not directly related to production and cannot be easily traced to a product or service.

• Direct expenses are variable costs while indirect expenses are fixed costs.

• Examples of direct expenses include raw materials, labor costs, and manufacturing overh...read more

Bonds and interest rates have an inverse relationship.

• When interest rates rise, bond prices fall.

• When interest rates fall, bond prices rise.

• This relationship exists because bond prices are influenced by the prevailing interest rates in the market.

• When interest rates increase, newly issued bonds offer higher coupon rates, making existing bonds with lower coupon rates less attractive.

• Conversely, when interest rates decrease, newly issued bonds offer lower coupon rates, making e...read more

QBD can be applied in analytical projects based on stability studies to ensure robustness and reliability of analytical methods.

• QBD principles can be used to identify critical method parameters and establish appropriate control strategies.

• Design of Experiments (DOE) can be employed to optimize analytical methods for stability studies.

• Risk assessment tools can be utilized to prioritize critical quality attributes and parameters.

• Continuous monitoring and evaluation of analytica...read more

The management failed to anticipate a shift in market trends, leading to a decline in sales and profitability.

• Lack of market research and analysis

• Failure to adapt to changing consumer preferences

• Ineffective decision-making processes

• Lack of strategic planning and foresight

Depreciation is the deduction of recorded cost of a fixed asset in a systematic manner.

• Depreciation is a method of allocating the cost of a fixed asset over its useful life.

• It is a non-cash expense that reduces the value of an asset over time.

• Depreciation can be calculated using various methods such as straight-line, declining balance, and sum-of-the-years' digits.

• For example, if a company purchases a machine for $10,000 with a useful life of 5 years, the annual depreciation ...read more

Balance Sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time.

• It presents the assets, liabilities, and shareholders' equity of a company.

• Assets are resources owned by the company, such as cash, inventory, and property.

• Liabilities are the company's obligations, such as loans and accounts payable.

• Shareholders' equity represents the company's net worth, calculated as assets minus liabilities.

• The balance sheet follow...read more

The biggest challenge to EV growth is the lack of charging infrastructure.

• Insufficient charging infrastructure limits the range of EVs and makes it inconvenient for drivers to charge their vehicles.

• Building charging stations requires significant investment and coordination between government, utilities, and private companies.

• Range anxiety is a major concern for potential EV buyers, as they worry about running out of charge on long trips.

• The high cost of EVs compared to tradit...read more

Retained earnings are the accumulated profits of a company that are reinvested into the business instead of being distributed to shareholders.

• Retained earnings represent the portion of net income that is retained by the company after dividends are paid out to shareholders.

• They are reported on the balance sheet under the equity section.

• Retained earnings can be used for various purposes such as funding growth, paying off debt, or acquiring assets.

• They can be positive or negativ...read more

Stock prices are affected by various factors such as company performance, economic conditions, and market trends.

• Company performance and financial health

• Economic conditions such as inflation, interest rates, and GDP

• Market trends and investor sentiment

• Industry-specific factors such as regulations and competition

• Global events and geopolitical risks

• Company news and announcements

• Supply and demand for the stock

• Dividend payouts and stock buybacks

GAAP stands for Generally Accepted Accounting Principles. It is a set of accounting standards and principles used in the preparation of financial statements.

• GAAP is a set of guidelines and principles that govern the accounting and financial reporting practices of companies.

• The main goal of GAAP is to ensure consistency, comparability, and transparency in financial reporting.

• GAAP provides a framework for recording, summarizing, and presenting financial information.

• Some of the ...read more

The annual report of companies is typically prepared by the management team and approved by the board of directors.

• The management team of a company is responsible for preparing the annual report.

• The annual report is then approved by the board of directors before being released to shareholders and the public.

• The annual report includes financial statements, management discussion and analysis, and other relevant information about the company's performance.

• Investors, analysts, an...read more

DHU stands for Dynamic Host Configuration Protocol (DHCP) and it is a network management protocol used on IP networks.

• DHU is used to automatically assign IP addresses to devices on a network.

• It also provides other network configuration information such as the subnet mask and default gateway.

• DHU helps in reducing the administrative workload of assigning IP addresses manually.

• An example of DHU in action is when a computer connects to a network and automatically receives an IP a...read more

The market size of X-ray machines in Delhi can be estimated by analyzing the number of hospitals, clinics, and diagnostic centers in the city.

• Analyze the number of hospitals, clinics, and diagnostic centers in Delhi

• Estimate the number of X-ray machines in each facility

• Multiply the number of machines by the average cost of an X-ray machine

• Add up the total cost to estimate the market size

I do not have access to the required data to estimate the revenue of PVR cinemas near me in the year 2019.

• I do not have access to the financial reports of PVR cinemas.

• The revenue of PVR cinemas can vary based on factors such as location, competition, and ticket prices.

• Without access to data on the number of tickets sold and the average ticket price, it is difficult to estimate revenue.

IFRS stands for International Financial Reporting Standards.

• IFRS is a set of accounting standards developed by the International Accounting Standards Board (IASB).

• It provides a common framework for financial reporting across different countries.

• IFRS aims to enhance transparency, comparability, and reliability of financial statements.

• It is used by companies to prepare their financial statements in a consistent and standardized manner.

• IFRS covers various aspects of financial re...read more

Guesstimate the revenue of a single McDonald's outlet on a Friday based on 90% of 1.05.

• Calculate 90% of 1.05 to get the average revenue per outlet.

• Consider factors like location, size of outlet, menu items, and customer traffic.

• Look at historical data or industry averages for similar outlets.

• Factor in promotions or special events that may impact revenue on a Friday.

Finance is the management of money and investments.

• Finance involves managing money, investments, and financial risks.

• It includes activities such as budgeting, investing, and financial analysis.

• Examples of finance include personal finance, corporate finance, and public finance.

I don't have the available data to answer this question.

GC is a technique used for separating and analyzing compounds in a mixture, with various instrumentation and carrier gases. GCMS, DSC, NMR, and LCMS are related techniques.

• Gas Chromatography (GC) is a technique used to separate and analyze compounds in a mixture based on their interaction with a stationary phase and a mobile phase.

• Common carrier gases used in GC include helium, nitrogen, and hydrogen.

• GC instrumentation includes a column, injector, detector, and oven for tempe...read more

We can fastly play the game by practicing regularly and developing strategic thinking. Cleverness comes from analyzing situations quickly and making smart decisions.

• Practice regularly to improve reaction time and familiarity with the game

• Develop strategic thinking to anticipate opponents' moves and plan ahead

• Analyze situations quickly to make informed decisions

• Adapt to changing circumstances and think outside the box

• Utilize resources efficiently to gain an advantage

The interview covered topics such as non-cash expenses, capital markets, share stock vs share split, GST, and WACC.

• Non-cash expenses are expenses that do not involve the payment of cash, such as depreciation and amortization.

• Capital markets are where financial securities are bought and sold, such as stocks and bonds.

• Share stock refers to the issuance of new shares of stock, while share split refers to dividing existing shares into multiple shares.

• GST (Goods and Services Tax) ...read more

The strategy to come out of private equity involves identifying potential buyers, preparing the company for sale, and negotiating the terms of the sale.

• Identify potential buyers through market research and networking

• Prepare the company for sale by improving financials, streamlining operations, and addressing any legal or regulatory issues

• Negotiate the terms of the sale, including price, payment structure, and any contingencies

• Consider alternative exit strategies, such as an I...read more

Lead generation is the process of identifying and cultivating potential customers for a business's products or services.

• It involves collecting information about potential customers such as their contact details and interests.

• The goal is to create a list of qualified leads that can be targeted with marketing and sales efforts.

• Lead generation can be done through various channels such as email marketing, social media, and search engine optimization.

• Examples of lead generation ta...read more

I select stocks based on fundamental analysis and market trends.

• I analyze the financial statements of the company to assess its financial health

• I research the industry and market trends to identify potential growth opportunities

• I consider the company's management team and their track record

• I evaluate the company's competitive advantage and market position

• I monitor the stock's price and trading volume for any significant changes

• Example: I invested in Apple Inc. after analyzing...read more

COVID-19 has significantly impacted the banking sector globally.

• Banks have faced challenges in maintaining operations due to lockdowns and social distancing measures.

• Loan defaults have increased due to economic slowdown and job losses.

• Digital banking has seen a surge in demand as customers avoid physical branches.

• Banks have had to increase provisions for bad loans and reduce dividends to conserve capital.

• Central banks have implemented monetary policies to support the economy ...read more

Financial statements are documents that provide information about a company's financial performance and position.

• Financial statements include the balance sheet, income statement, and cash flow statement.

• 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 profits over a period of time.

• The cash flow statement shows how cash is generated and used by a company ...read more

EPS stands for Earnings Per Share. It is a financial metric used to measure a company's profitability.

• EPS is calculated by dividing a company's net income by the number of outstanding shares of its common stock.

• Formula: EPS = (Net Income - Dividends on Preferred Stock) / Average Outstanding Shares

• EPS is an important indicator of a company's financial health and performance.

• Investors use EPS to evaluate a company's profitability and to compare it with other companies in the sa...read more

Gross profit is the revenue earned after deducting the cost of goods sold.

• Gross profit = Revenue - Cost of goods sold

• It is a measure of a company's profitability

• It does not take into account other expenses such as operating expenses

• Example: A company sells a product for $100 and it costs $60 to produce. The gross profit is $40.

• Example: A company's revenue is $500,000 and its cost of goods sold is $300,000. The gross profit is $200,000.

A trading account is a type of financial account used to buy and sell securities, such as stocks, bonds, and derivatives.

• A trading account is used by investors and traders to execute trades in the financial markets.

• It allows individuals and institutions to buy and sell various types of securities.

• Trading accounts are typically offered by brokerage firms or financial institutions.

• They provide access to different markets, such as stock exchanges, commodities markets, and foreig...read more

Companies want to incorporate sustainability to improve their reputation, reduce costs, comply with regulations, and attract investors.

• Improves reputation and brand image

• Reduces costs through energy efficiency and waste reduction

• Complies with regulations and avoids fines

• Attracts socially responsible investors

• Mitigates risks associated with climate change and resource scarcity

Access to Google sheet can be controlled through sharing settings.

• Access to Google sheet can be restricted to specific people or groups.

• Sharing settings can be set to view-only or edit access.

• Link sharing can also be enabled or disabled.

• Access can be revoked at any time.

• Two-factor authentication can be enabled for added security.

Different approaches of market estimation include top-down approach, bottom-up approach, and primary research.

• Top-down approach involves starting with the total market size and then estimating the potential market share for a product or service.

• Bottom-up approach involves estimating the market size by aggregating individual sales data or customer surveys.

• Primary research involves directly collecting data from potential customers through surveys, interviews, or focus groups.

Quantitative research requires a structured approach to data collection and analysis.

• Define research question and hypothesis

• Select appropriate sample size and sampling method

• Collect data using standardized instruments

• Analyze data using statistical methods

• Draw conclusions and make recommendations

• Ensure validity and reliability of findings

Both statements are important, as they may have different implications and consequences depending on the context.

• The importance of each statement depends on the situation and the goals of the research.

• One statement may be more relevant for a specific research question or hypothesis.

• Both statements should be considered and analyzed in order to draw accurate conclusions.

• For example, in a study on the effectiveness of a new drug, both the positive and negative outcomes should be...read more

EPS is earnings per share, while P/E ratio is the price-to-earnings ratio.

• EPS is a company's net profit divided by the number of outstanding shares.

• P/E ratio is the current market price of a share divided by its EPS.

• P/E ratio is used to determine if a stock is overvalued or undervalued.

• A high P/E ratio may indicate that investors have high expectations for future growth.

• A low P/E ratio may indicate that investors have low expectations for future growth.

Data analysts collect, clean, analyze, and interpret data to help organizations make informed decisions.

• Collect data from various sources

• Clean and organize data to ensure accuracy and consistency

• Analyze data using statistical techniques and tools

• Interpret data to identify trends, patterns, and insights

• Present findings and recommendations to stakeholders

• Use data visualization tools to communicate results effectively