10+ Senior Financial Analyst Interview Questions and Answers for Freshers

Answering questions related to financial statements and allocation of expenses

• The financial statements include the income statement, balance sheet, and cash flow statement

• Sale of FA impacts the income statement, balance sheet, and cash flow statement through depreciation and gain/loss on sale

• Cash sales and credit sales impact the income statement and cash flow statement differently

• Allocation of rent can be based on square footage, number of employees, or revenue generated by ...read more

My daily tasks include financial analysis, forecasting, budgeting, and reporting. I want to change for career growth opportunities.

• Daily tasks involve analyzing financial data, creating forecasts, developing budgets, and preparing reports

• I want to change for opportunities to further develop my skills and advance my career

• Forecasting is the process of predicting future financial outcomes based on historical data and trends

• Budgeting involves setting financial goals and allocati...read more

Enterprise value is a measure of a company's total value, including debt and equity.

• Enterprise value is calculated as market capitalization plus debt, minority interest, and preferred shares, minus total cash and cash equivalents.

• It represents the total value of a company that would have to be paid by an acquirer in a takeover.

• Enterprise value is used to compare companies with different capital structures.

• EV/EBITDA ratio is a common metric used to evaluate a company's valuati...read more

Capital Asset Pricing Model (CAPM) is a financial model that calculates the expected return on an investment based on its risk.

• CAPM is used to determine the appropriate rate of return for an investment by taking into account its risk compared to the overall market.

• It is based on the idea that investors should be compensated for both the time value of money and the risk they are taking.

• The formula for CAPM is: Expected Return = Risk-Free Rate + Beta * (Market Return - Risk-Fre...read more

Reduce data size by removing unnecessary columns, aggregating data, using data compression techniques, and optimizing data storage.

• Remove unnecessary columns that are not being used in analysis

• Aggregate data by grouping similar data points together

• Use data compression techniques like gzip or snappy to reduce file size

• Optimize data storage by using efficient data structures and algorithms

• Consider using data deduplication to remove redundant data

Trades typically get settled within a few days after the transaction takes place.

• Trade settlement refers to the process of transferring securities and funds between buyers and sellers.

• The exact timing of trade settlement depends on the type of security being traded and the market in which the trade occurs.

• In most cases, equity trades settle within two business days, while government bonds and corporate bonds settle within one business day.

• Some markets, such as the T+0 settlem...read more

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

• Mutual funds are managed by professional fund managers.

• They offer investors the opportunity to invest in a wide range of assets, such as stocks, bonds, and commodities.

• There are different types of mutual funds, including equity funds, bond funds, money market funds, and index funds.

• Equity funds invest primarily in stocks, while bond funds invest in f...read more

Derivatives are financial instruments whose value is derived from an underlying asset or benchmark.

• Types of derivatives include futures contracts, options contracts, swaps, and forward contracts.

• Futures contracts are agreements to buy or sell an asset at a predetermined price on a future date.

• Options contracts give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specific time period.

• Swaps involve the exchange of cash flo...read more

Amazon's principles guide their decision-making and culture, focusing on customer obsession, innovation, and long-term thinking.

• Customer obsession: Putting the customer first in all decisions and actions

• Innovation: Constantly seeking new ways to improve and evolve

• Long-term thinking: Making decisions that benefit the company in the long run, even if it means sacrificing short-term gains