Financial analyst


The financial analyst is a professional who is dedicated to the interpretation of economic data. In this way, he is able to propose a series of actions to his client so that he can maximize or increase his profit.

That is, the job of this person specialized in financial analysis is to guide his client in making decisions so that he can achieve the best possible situation. This, based on a study of the current state and future scenarios.

The financial analyst must then be prepared not only to give a diagnosis of the company, but to provide a series of guidelines based on the external and internal variables that could impact the results of the organization.

Functions of the financial analyst

The main functions of the financial analyst are:

  • Study the situation of the company. This is done mainly from financial statements and ratios. In this way, the level of profitability, indebtedness and liquidity of the organization is estimated, for example.
  • Analyze the trend of the global and local economy.
  • Propose actions to improve the results of the firm. For example, a change in financing strategy may be suggested.
  • Analyze investment proposals using different tools such as net present value (NPV).Thus, it will be possible to determine which businesses or projects could add value to the firm.
  • Continuing with the previous point, the analyst advises on the management of the investment portfolio, suggesting, for example, which assets or businesses can be sold.
  • Monitor the investment projects that are being developed, for example, regarding the level of progress in the case of a work that has not been completed.
  • Coordinate with the auditors to advise them in the preparation of the annual reports.

Financial Analyst Profile

A financial analyst should meet, in general terms, the following profile:

  • You must be an analytical professional, with the ability to interpret a large amount of information. In this way, you will be able to propose proposals or solutions to the problems identified.
  • You must be able to find small details that are decisive for the outcome of the organization.
  • Communication skills, both oral and written, to keep your client informed in a clear and transparent way.
  • The professional must have studies in economics, administration, accounting, finance or related areas (if they have a postgraduate degree in any of these subjects it is a plus). In addition, it is important that you have mathematical ability as this is the tool on the basis of which you will do your work.
  • It is important that you are fluent in English because there is international financial information in that language that is relevant to your work.

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