All You Wanted To Know About The Financial Analyst - Part 2
In part 1, we discussed who is a financial analyst, the education required to be one, and the skills required of the financial analyst. Lets discuss ahead.
What duties do Financial Analysts perform?
Some of the major duties of financial analysts are listed below. The financial analysts
- Write reports and form opinions on the companies they cover by studying public records and other reports.
- Analyze capital budgeting projects.
- Do long-term financial planning and implement financial plans.
- Analyze possible mergers and acquisitions.
- Study competitors of the companies they cover.
- Monitor the daily changes in the market prices of the companies they cover.
- Read financial statements and analyze prices, sales, costs, expenses, and tax rates to determine a company's value and project its future earnings.
- Keep track of the new policies and regulations that may affect the companies in any way.
- May also help companies in making decisions and also help them to remain compliant with SEC and other regulations. They may also help the companies to do initial public offerings.
What salaries and positions do Financial Analysts get?
A junior financial analyst may get a salary between $20k-$50k depending on where he/she takes up a job. This is the entry level job and a three year degree may suffice for it. A senior financial analyst may get a salary between $40k-$80k depending on where he/she takes up a job. A MBA degree is usually required for this position. The CFA qualification further enhances the knowledge and salary demanding power of a financial analyst. A MBA-CFA person could get over $100k+ depending on where he/she takes up a job.
What are the growth prospects for a Financial Analyst?
The senior financial analyst can get promoted to the positions of the treasurer or the controller. Further promotions can take a person up to the position of the CFO or the Chief Financial Officer.
