37 Financial Analyst Interview Questions With Sample Answers

By Indeed Editorial Team

Published 5 August 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

A financial analyst assesses financial statements and creates models to identify investment opportunities and recommends profitable options for investors to grow their wealth. If you are applying for a position in this domain, it is essential to review some common interview questions that employers might ask regarding your education, work experiences and in-depth knowledge of the industry when applying as a financial analyst. Preparing informative and impressive answers can help you feel confident and calm in the interview and increase your chances of securing a job.

In this article, we list 37 financial analyst interview questions with some sample answers to help you model yours successfully for your next interviews.

Related: How To Become A Finance Analyst: A Step-By-Step Guide

10 General Financial Analyst Interview Questions

General financial analyst interview questions usually help employers to learn more about you and your character traits and approaches to work. Some common questions in this category are:

  1. According to you, what are the most important responsibilities of a financial analyst?

  2. Which skills are essential for financial experts?

  3. What do you do in your free time?

  4. Why do you want to work for our organisation?

  5. What is your greatest weakness?

  6. Tell me about a time when you had to present financial data.

  7. Which was your most successful project?

  8. How do you ensure accuracy while handling a large project?

  9. Which factors do you consider while evaluating a loan?

  10. Where do you see yourself in five years?

10 Questions About Experience And Background

Knowing the basic concepts, calculation methods and data analysing software can help you prepare well and convey your potential effectively to the employer. Here are a few commonly asked interview questions on experience and background as a financial analyst:

  1. Which skills did you acquire from your previous work experience?

  2. Do you currently have any industry licenses or certifications and how did they help you in a professional context?

  3. Describe a situation where you had to meet a tight deadline. How did you complete it?

  4. Can you tell me a time when your team members disagreed with the business model you created for a client?

  5. What is NPV?

  6. Do you have experience in benchmarking?

  7. How do you deal with work pressure in this fast-paced industry?

  8. How would you convince an investor about your company's financial health?

  9. Explain quarterly forecasting and expense models

  10. Do you follow the stock market? Which stocks in particular?

Related: How To Become A Financial Analyst (With Skills And Salary)

10 In-Depth Interview Questions For Financial Analysts

A financial analyst is directly responsible for improving the returns on investment for their clients and requires strong computing skills, logical reasoning, problem-solving ability and excellent communication skills. Here are some industry-related questions that require logical and in-depth responses:

  1. How would you develop an investment recommendation for senior management?

  2. What is EBITDA and why is it relevant to stock performance analysis?

  3. Tell us how would the income statement change if a company's debt increased?

  4. According to you, what is the best evaluation metric for analysing a company's stock?

  5. Tell us about the different types of working capital.

  6. Can you explain the quarterly forecasting and expense model?

  7. What happens to a company's cash flow when there is an increase in accounts receivable?

  8. How would you explain solvency to someone with no financial experience?

  9. If you can only choose one profitability model to forecast your projects, which one is it and why?

  10. What do you think is the best evaluation metric for analysing the company's stock?

Related: What Does A Financial Analyst Do? (Duties And Career Advice)

7 Financial Analyst Interview Questions With Sample Answers

Here are some commonly asked interview questions with their sample answers to help you draft yours when interviewing for a financial analyst role:

1. Why did you choose to be a financial analyst?

Many hiring managers ask this question to know more about your passion, career goals and interest in the finance industry and to understand whether these match the company's expectations. You can prepare an answer that conveys your aspirational goals for becoming a financial analyst.

Example: ‘I decided to be a financial analyst as I have always been curious about personal and business finance. From an early age, I always searched for ways to grow and multiply wealth and to help people do the same to the best of my abilities. In addition, I am confident my analytical skills can help me perform financial analyses better, which ultimately led me to this profession.'

Related: How To Highlight Resume Skills For A Financial Analyst

2. What is your greatest strength?

With this question, an interviewer wants to know how your current personal and professional abilities can contribute to the company's growth. Mention your strengths that directly relate to your profile. You can also mention how you acquired these strengths and what efforts you have made to develop them.

Example: ‘I believe that attention to detail and discipline are my biggest strengths. At my previous job, I excelled at scrutinising every aspect of an investment opportunity to ensure that my clients make effective investment decisions based on market conditions and forecasts. I make it a habit to avoid time-wasting activities and am committed to completing one task at a time.'

Related: 5 Examples Of Financial Analyst Resume Objective (With Tips)

3. Which tools do you use to prepare illustrated reports with graphs, spreadsheets or charts?

Creating easily understandable reports and spreadsheets quickly and efficiently is an essential skill for almost all financial analysts. In your answer, mention all the financial analysis software and tools you may have used at your previous workplace. You can also cite any software certifications that you have.

Example:Through my years of experience, I have become familiar with popular financial analysis software to enhance my work efficiency. I am also confident of my ability to use different relevant applications to create lucid statistical reference tools.'

4. What is a cash flow statement?

A cash flow statement is a financial statement that contains entries regarding incoming and outgoing financial resources. Here, you can start by explaining the three essential categories of cash flow statements and conclude by mentioning the benefits of using them. You can answer briefly and precisely using examples.

Example: ‘The cash flow statement has three major three categories: cash flow from operating activities, cash flow from financing activities and cash flow from investing activities. A detailed cash flow statement can help the company assess their financial health, estimate free cash flow and highlight the changes in account balances on the sheet.'

Related: Finance Associate Vs. Analyst: Definitions And Differences

5. Which financial methodologies you are familiar with? Give an example of when you used one of these in your work.

An interviewer often asks this question to check whether you are familiar with industry terminology. You can describe your knowledge of the various methods and how you apply them to analyse data. Consider giving examples that convey your understanding of the three most common methods of financial analysis.

Example: ‘I have experience working with horizontal, vertical and ratio or trend analysis. It helped me gauge the company's financial progress over time. I have previously used the trend analysis method to understand my company's liquid assets in relation to its liabilities.'

6. Explain financial modelling.

Financial modelling is a core responsibility of a financial analyst. In your answer, you can share your experience of using different types of financial models. Consider explaining the importance of financial models and how impactful they can be in financial analysis.

Example: ‘Financial modelling is summarising the company's income and expenditure in a single sheet to know about the company's profitability, which can help strategise future financial decisions. In my previous job, I used different financial models, including the initial public offering, consolidation and discounted cash flow models, to estimate the valuation of the business, compare competition and plan the budget for my clients.'

Related: What Is Financial Modelling? (With Benefits And Types)

7. Tell us about the different types of working capital

While answering this question, give a definition of what is working capital and its types. Employers might ask you to give some examples of when your previous experience when the company required additional working capital. Consider telling the times when you used working capital to improve your company's performance.

Example: ‘Working capital refers to current assets minus current liabilities. It is a financial metric representing operating liquidity available to a company or business. In my previous role, I worked with different types of working capital, including permanent working capital, regular working capital, reserve margin working capital and gross working capital, to meet short-term obligations and analyse the total amount of money to meet the demand of expenses.'

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