The profession of financial analyst is relatively recent when we consider the history of the economy . It was born from the need to more rigorously evaluate the solidity of companies and markets following the Great Depression of the 1930s. Its goal was to reassure investors about the future stability of the economy to allow new growth after a long period of doubt. The profession of analyst then became institutionalized with globalization, and these professionals are now essential in almost all large companies . They are consulted before each major decision.
As the name suggests, a jordan phone data financial analyst is a specialist in economics , particularly in finance and accounting . He works independently or can be employed within a company, particularly those listed on the stock exchange, which need his services almost daily. His job mainly consists of collecting all the relevant information when it comes to making an investment or taking a decision that may impact the company's capital. Among the information he collects, we can cite that relating to partner or rival companies, their activities, their value, and their prospects for development, all related to an in-depth study of the current economic conditions of the market. These conditions can vary from one country to another, so the financial analyst must explore information from around the world to extract what he is looking for. This exploration is facilitated these days by the use of specialized software in information collection, which allows him to scan the different sources more quickly. These sources are numerous: articles from the specialized press, market reports, decisions of economic institutions, etc.
However, while the bulk of his work consists of collecting economic information , the core of his job remains the analysis of the information obtained. This data is compared to sectoral references, implemented in financial ratio calculations, and can be integrated into software or algorithms that will detect the emergence of new trends. This analysis will then be used by his employer to make decisions based on the financial analyst's report . Although it has a mainly informative value, this report nevertheless has real weight.
Functions of a financial analyst in a company
Within a large company, the financial analyst plays a central role, close to that of an advisor to management when it comes to capital movements.
Financial Statement Analysis : By examining the company's financial statements, cash flow and assets, it draws up a statement of accounts for the company or its rivals (or partners). This statement of accounts will be used to assess financial performance before committing significant capital.
Forecasting economic trends : Major economic trends are rarely announced. However, they can be predicted with varying degrees of accuracy. Since they have a significant impact on the company he works for, the financial analyst tries to anticipate them using collected data and advanced algorithmic software.
Financial Risk Management : Risks are part of the game in economics. But to assume them, you must know how to identify and evaluate them, in order to propose, if necessary, appropriate measures to management. This is also the role of the analyst.
Preparation of financial reports : The analyst's communication with his company is done through financial reports, which he must prepare according to a pre-established and standardized form. This standard can be established by him or imposed on him, but the goal remains the same: to provide complete , readable and understandable information to capital managers so that they can quickly make a decision.
Monitoring budgets and investments : The financial analyst's main responsibility is to carefully monitor the budgets of the various departments and their investments to ensure their consistency with the company's objectives. Any inconsistency should be the subject of a part of the report that he will submit to his employer, accompanied by a quantified explanation and corrective measures that he can recommend.
Optimization of financial and tax strategies : Some analysts are also specialized in the field of corporate law and can help the company optimize its expenses by transforming the tax burden into an investment. They can also propose new financial strategies, depending on the evolution of markets, uses, buyer behavior or changes in the legal or tax framework.