FIN 320 Project One Financial Analyst Job Aid PDF

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FIN 320 Project One Financial Analyst Job Aid The goal of this job aid is to provide an overview of the day-to-day responsibilities of a financial analyst and to describe the role financial management plays in an organization. Financial Responsibilities A financial analyst, guide businesses and individuals in how to expend money to obtain profit from stocks and other businesses.

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Buy side investments firms, Buy side financial analysts work to devise investment strategies for a company's portfolio. Job responsibilities include researching stocks for an in-house fund. (Aspiring Minds) Financial analysts evaluate and compare the quality of securities in each sector/ industry and give recommendations such as: buy, sell, strong buy, strong sell or hold. (Aspiring Minds) Financial analysts determine feasibility of deals based on researching the fundamentals of the companies involved in the deal. (Aspiring Minds) Interpreting data affecting investment programs, such as price, yield, stability, future trends in investment risks, and economic influences. (Aspiring Minds) Recommending investments and investment timing to companies. (Aspiring Mind)

Financial Management Decisions Making business decisions is always a hard one your finances must be right as rain. Before any business can propose change and invest in new projects it must make sure that financially the company can do as stated. The books that withhold all the information of the company spending must be right and accurate. The company also needs to plan out if investments were to fail could they survive with the lost of money. Managing the finances is important for the good and the bad. There needs to be stability to know when it is the right time to spend and not to. They are the foreseers of the money and financial aspect of the company they withhold the golden key to a company win and fall. Without them a company would be lost on what is being spent and what is being lost. They would never know when to invest or what is the right business move to make for the company without hitting bankruptcy. The decisions would be withheld within the CEO and with all there responsibilities to handle, trying to handle the responsibilities of finances would probably turn the company for the worst. Accounting Principles The accounting principles are the elements to companies’ statements. They keep the company updated on the growth and development of the company. A company can tell whether its failing and changes needed to be made. Or that it is growing in numbers and is sustainable.

Principle is used to follow your given the balance sheet, the income sheet, the revenue sheet. The principal said these are statements that are created that show the financial Avenue power company is doing. It’s a calculation of everything from cost to get sold, sales, I can’t payable, accounts receivable, and many more. It’s broke down into three sections where you have stockholder’s equity equals assets minus liabilities. For a company they will have assets of which they obtain and then they also have liabilities which are paid forward to those who they borrowed from or a debt to. This keeps The company at bay, it manages the business and how is it holding whether it’s healthy or not healthy. It’s showing whether the tactic that the business is using to create the flow of income is working, as well as showing the negative impact that’s hitting it that’s lowering their income. Financial analysts rely on these accounting sheets to allow themselves to know but the business can and cannot do with money. If it’s showing a negative impact and the money is not coming in as needed to be as well as with bills to be paid and paying out to employees, financial analyst definitely come in to make that be something aware and no to the company. If the information was not accurate it can cause the company to go into bankruptcy it can cause the company to lose out on investors as well as other businesses, they make a smaller bag. A lot of negative things can happen because the financial sheets are What show a company what they’re able to do on what they’re not able to do.

Financial Statements [In this section, describe how financial statements are used to help businesses make finance-related decisions, and provide examples to support your claims. Consider identifying the information contained in financial statements and what financial analysts would need to do their job. What types of finance-related business decisions would this information help to inform? Provide real or fictional examples to help show this.] Financial Terminology [In this section, explain how a financial analyst would use the provided financial terms in their day-today responsibilities in a clear, easy-to-understand way. Provide a 1- to 2-sentence explanation of how a financial analyst might use each of the terms listed below, especially when communicating information to management or clients, or when relaying information to inform important decisions.] Financial statement  Definition: Financial statements are written records that convey the business activities and the financial performance of the business and sales through the business.  How this is used: Financial analyst uses to keep records of activities going on within the business as well as the financial activities and make sure that they are 100% a match as being read. Liquidity  Definition: The availability of liquid assets to market company, it can also mean liquid assets meaning cash as long as a high volume of activity within the market.  How this is used: A financial analyst will go through the financials which is the balance sheet of

the company and will measure a company’s liquidity using a ratio setting. Working capital  Definition: Working capital equals current assets minus current liabilities. Working capital of the amount of cash a business can say this band, is commonly defined as the current assets minus current liabilities. Is calculated based on cash assets and there’s also converted to cash and expenses will be due within a years time.  How this is used: Financial analyst use this to show creditors and put it on pastors that the company can pay short term payables within a years’ time. Diversification  Definition: The action of diverse find some thing or the fact that becoming more diverse as well as the business and large or bearing its range of products or the field operation.  How this is used: Financial analyst useless to expand into Markets in industries they haven’t currently explored Time value of money  Definition: Is the concept of money that one has at the current time is worth more than the identical Sam in the future due to his potential earning capacity.  How this is used: Financial analyst will use this as a calculation for investors, for them to make a more informed decision about what to do with their money that they’re trying to invest within the company.

References

Aspiring Minds. “Financial Analyst - Fresher/ Entry Level - Aspiring Minds.” Aspiring Minds, 11 Sept. 2019, www.aspiringminds.com/hr-insights/featured-profiles/financial-analystfresher-entry-level/....