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Typical Steps for Becoming a Financial Analyst – According to the National Center for O*Net Development, people who are drawn to financial services careers are natural planners. They like to evaluate and compare facts then make judgments and decisions based on what they have learned.

What qualifications do I need to be a financial analyst?

What qualifications do I need? – You will need to have a bachelor’s degree as a minimum, in a finance-related subject such as economics, statistics or accounting. You would have a much broader range of opportunities available if you had a master’s degree in finance or a Master’s of Business Administration (MBA). You may also need to get certified if you want to advance your career. Many employers will require you to get the CFA charter for senior level positions. The CFA charter is the most prestigious designation a financial analyst can achieve. It comprises three tough exams and four years of relevant experience.

Is it hard to become a financial analyst?

Required Skills and Education – Compared to many high-paying careers, the qualifications to become a financial analyst are much less rigid and well-defined. Unlike law and medicine, no career-wide educational minimums exist. Whether you face any required licensing depends on factors, such as your employer and your specific job duties.

• That said, in the 21st century, a bachelor’s degree—preferably with a major in economics, finance, or statistics —has become a de facto requirement for becoming a financial analyst.
• Other majors that are looked upon favorably include accounting and math, and even biology and engineering—especially if one has an interest in specializing as an analyst in those industries.

The competition is too great, and undergraduate or advanced degrees are too common in the job market, to have a serious chance of applying for an analyst position with less than a bachelor’s degree. The big investment banks, where the huge first-year salaries get paid, recruit almost exclusively at elite colleges and universities, such as Harvard University and Princeton University.

Candidates applying with degrees from less prestigious schools can increase their chances by continuing their education and obtaining an MBA from a highly-ranked business school. MBA graduates are often hired as senior analysts right out of business school. Regardless of education, a successful career as a financial analyst requires strong quantitative skills, expert problem-solving abilities, adeptness in the use of logic, and above-average communication skills.

Financial analysts have to crunch data, but they also have to report their findings to their superiors in a clear, concise, and persuasive manner.

What does an entry-level financial analyst do?

What Is the Job of an Entry-Level Financial Analyst? Entry-level financial analysts compile budget and income statement forecasts into reports. In this role, you analyze the information for a business and provide advice on how to improve the financial health of the company.

Is a financial analyst a good job?

Financial Analyst Salary and Job Outlook – Financial Analysts guide their organizations with financial decisions that can help them make a profit. According to the U.S. Bureau of Labor & Statistics, the median pay in 2021 for Financial Analysts was $96,000,

Financial analytics is ranked as the 13th best business job currently available. This profession has a high level of upward mobility, with incentives such as raises and career advancement for qualified individuals. The job outlook for Financial Analysts from 2021-2031 projects a 9% growth rate, which is faster than the national average.

Approximately 32,000 Financial Analyst job openings are expected each year throughout this decade. In part, this expansion is due to an increase in economic activity, as well as emerging industries that need Financial Analysts to help direct their growth.

1. Globalization also contributes to this trend; as markets around the globe develop, many organizations seek Analysts to help them decide how best to expand and where to invest.
2. This is why Financial Analysts with a background in cultural, political, or economic trends in a given geographical location are currently in-demand.

While the estimated growth in financial services is expected to lead to new job creation, the number of individuals who wish to enter this field is currently greater than the number of available jobs. Despite this projected growth in financial analytics, securing a position is still considered competitive.

Are financial analysts wealthy?

Salary – Each of these professions has advantages, whether individuals are looking to enter the field or advance in their careers. This includes highly competitive salaries and strong job growth projections. According to the BLS, the median annual wage for financial analysts was $95,570 as of May 2021.

The median annual wage for financial risk specialists, another type of financial analyst, was $100,000 as of May 2021. Employment of financial analysts is projected to grow by 9% between 2021 and 2031. The BLS reports a similar median annual wage for financial advisors: $94,170 as of May 2021. However, the projected growth of financial advisor roles is 15%, adding nearly 51,000 new jobs over the same period.

The primary factor driving this growth is the nation’s aging population, according to the BLS. As the number of older Americans increases, more financial advisors will be needed to help them plan for retirement.

How stressful is a financial analyst job?

Yes, being a financial analyst is a hard job, Most financial analysts report high-stress levels and heavy workloads. The work itself is complex and requires a lot of knowledge and continuous study. While financial analysts are usually paid well, it comes at the cost of a healthy work-life balance in many cases.

While there are many different types of financial analysts, most usually involve standing knee-deep in a pile of data while combing through it, looking for nuggets of opportunities. Thus, working as a financial analyst is not for everyone – especially those who are not keen on spending long hours with complex datasets running statistical analyses.

A major challenge in being a financial analyst stems from being good at analyzing and interpreting financial statements, market trends, and microeconomic conditions. In order to achieve this, most financial analysts have academic backgrounds in business, financial, or accounting, as well as additional certifications (e.g., MBA, CPA, CFA).

Consistent with this, a financial analyst should have a fundamental understanding of theory in order to really understand financial modeling. One out of three financial analysts works 50-to-70 hours a week. Competition for these jobs is fierce, and, as a result, many financial analysts feel pressure to put in long hours and to over-perform at work.

The work-life of a financial analyst, however, can vary greatly depending on the company and industry. Working at a large firm like Goldman Sachs, for instance, usually means working long hours, dealing with a lot of stress, and having a regular performance analysis (aka: show me the money).

However, those who work at smaller companies report feeling less on-the-job stress and feeling greater satisfaction in their work-life balance. At the end of the day, a financial analyst is just there to provide data-driven recommendations. It’s someone else who decides whether to pursue the recommendation.

This takes some of the pressure off in being responsible for business outcomes. In fact, many financial analysts report this aspect of the job as being less stressful compared to those in leadership roles.

Do financial analysts need to know math?

Math Skills – Assessing the performance of stocks and bonds, as well as estimating the value of a company, requires extensive math skills. Analysts use complex mathematical and statistical techniques such as linear regression to analyze financial data. Financial analysts can expect to take complex math courses in college and graduate school, including calculus, linear algebra and statistics.

What is the lowest financial analyst salary?

How much does a Entry Level Financial Analyst make in the United States? The average Entry Level Financial Analyst salary in the United States is $64,103 as of May 01, 2023, but the range typically falls between $58,403 and $70,903, Salary ranges can vary widely depending on many important factors, including education, certifications, additional skills, the number of years you have spent in your profession.

Do you work alone as a financial analyst?

Work Environment Most financial analysts work in an office in a corporate setting. Frequently, they work alone (e.g., when conducting research or talking on the phone to clients). Some may work out of their homes. Much time is spent working on a computer, doing research and compiling data.

Do financial analysts need to be good at accounting?

1. Accounting – Accounting skills are paramount to your financial analyst career. Accounting is the language of business. Knowing how to read financial statements reports to work effectively in finance is essential. You must be able to interpret financial documents such as balance sheets, cash flows, and income statements.

What is the highest paid job in finance?

Which finance sector has the highest salary? – The finance sector having the highest salary are investment banking, compliance officer, hedge fund manager, chief financial officer, chief risk officer.

Is a financial analyst higher than an accountant?

Pay and job outlook Financial analysts typically make more money than accountants, and they often have higher starting salaries. The U.S. Bureau of Labor Statistics estimates that accountants will have a 4% growth rate by 2029, while financial analysts will have a 5% growth rate by 2029.

What is the highest paying job in banking?

Investment Banker – Investment banking is one of the most lucrative careers in the banking sector. Investment bankers are responsible for helping companies and governments raise capital by underwriting and selling securities. The job requires excellent analytical skills, financial modeling, and a deep understanding of financial markets.

Is finance or accounting better?

Finance vs Accounting: Differences – Students and professionals who are debating between a finance versus accounting degree can take into account the differences between the roles. These differences are summarized below and are meant to be a guide. They are not always applicable to, and uniform among, all jobs and regions.

Finance professionals usually analyze financial data to plan the best way to source and allocate funds. Accountants collect and report past and present financial data on a daily basis to ensure that expenditures are in line with a company’s performance. Finance professionals are largely interested in future investments and study financial records and the market to best inform broader financial strategies. Accountants focus on operations, transactions, and processes to make sure books are balanced and a company is maximizing its resources. Accountants play an important role in ensuring taxes are paid and regulatory requirements are met. Additionally, some finance professionals, such as financial managers, can have more power in the decision-making process and can use information provided by accountants to make decisions. Accountants can become CPAs, or certified public accountants — professionals who can represent clients before the Internal Revenue Service and file with the Securities and Exchange Commission the audited financial reports that are required for every company. Finance degree holders can also take the tests to become a CPA; however, most states require heavy coursework in accounting to qualify, which many finance degree holders lack. Finance professionals deal with aspects such as return on investment (ROI) and risk management, and accountants focus on items such as balance sheets and income statements. The field of finance offers more career choices but also less predictability. In some cases, careers in finance might offer higher pay. Careers in accounting can offer more predictable and stable work but less pay in many cases. Careers in finance can be demanding with longer hours, while careers in accounting can require fewer hours, except during certain time periods, such as tax season.

The differences between finance professionals and accountants are summarized below.

What does Financial Analyst do daily?

Financial Analyst Financial analysts gather information, assemble spreadsheets, write reports, and review all non-legal pertinent information about prospective deals. They examine the feasibility of a deal and prepare a plan of action based on financial analysis.

• Being an analyst requires a vigilant awareness of financial trends.
• Analysts have a heavy reading load, keeping abreast of news stories, market movements, and industry profiles in financial newspapers, magazines, and books.
• Most analyst jobs are in banking houses or for financial-advising firms, which means following corporate culture and wearing corporate dress.

If a deal demands it, they must be prepared to travel anywhere for indeterminate lengths of time. Those who wish to rise in the industry should note the necessity of significant “face time,” attending social events and conferences and spending downtime with people in the profession, which can be expensive; this social circle tends to gravitate to high-priced attire and costly hobbies, habits, and diversions.

Analysts sacrifice a lot of control over their personal lives during their first few years, but few other entry-level positions provide the possibility of such a large payoff come year’s end. Many employers use bonuses, which can be equal to or double the beginning analyst’s salary, to attract and hold intelligent personnel.

Successful financial analysts become senior financial analysts or associates after three to four years of hard work at some firm. Those with strong client contacts and immaculate reputations start their own financial consulting firms. Many work as analysts for about three years and then return to school or move on to other positions in banking.

1. Financial analysts work long hours, and deadlines are strict.
2. When you have to get the job done, you get the job done.
3. Period,” emphasized one.
4. The occasional fifteen-hour day and night spent sleeping in the office is mitigated by the high degree of responsibility these analysts are given.
5. The long hours breed a close kinship.

Over 65 percent called their co-analysts extremely supportive, and many labeled them a “major reason” they were able to put up with the demanding work schedule. Most people become financial analysts because they feel it is the best way to immerse themselves in the world of finance and a great way to earn a lot of money.

What math do you need for finance?

Do You Need to Be a Math Wizard to Learn Finance? – Finance and math seem to go hand in hand. But does that mean that you have to be a math wizard to succeed in a finance job? What if math isn’t your strong point? Does this mean that you can’t pursue a career in finance? It’s normal to have these thoughts and it’s good to ask these kind of questions before you get into it.

Believe it or not, mastery of advanced math skills is not necessary to have a career in finance. With today’s technology, all math-related tasks can be done by computers and calculators. That said, there are some basic math skills that would certainly make you a better candidate in the finance industry.

And considering how competitive the job market can be sometimes, the more skills you have the better, math included. Some of the main math-related skills that the financial industry requires are: mental arithmetic (“fast math”), algebra, trigonometry, and statistics and probability.

Which course is best for financial analyst?

Chartered Financial Analyst (CFA) – The Chartered Financial Analyst (CFA) is the most recommended course for finance professionals. It consists of three levels and ideally, an individual takes 4 years to complete this course. The course lays a major emphasis on portfolio management and investment analysis.

What is the difference between a financial analyst and a data analyst?

Financial Analyst vs. Data Analyst: An Overview – If you are a student or young professional who is great with numbers, analytical, and an expert problem-solver, consider a career as either a financial analyst or data analyst. Financial analysts use financial data to spot trends and extrapolate into the future, helping their employers and clients make the best investing decisions.

1. Data analysts perform a similar role, the primary distinction being that these professionals analyze data that may or may not relate to investing decisions.
2. For example, a data analyst might study figures related to sales numbers, advertising efficacy, transportation costs, or wages versus productivity.

Because the required education and skills, income potential, work/life balance, and competitiveness of the job market are similar between the two fields, subtle differences in personality type and skill set determine whether someone is better suited for a career as a financial analyst or data analyst.

Which course is best to become a financial analyst?

Chartered Financial Analyst (CFA) – The Chartered Financial Analyst (CFA) is the most recommended course for finance professionals. It consists of three levels and ideally, an individual takes 4 years to complete this course. The course lays a major emphasis on portfolio management and investment analysis.

What does a financial analyst do day to day?

Financial Analyst Financial analysts gather information, assemble spreadsheets, write reports, and review all non-legal pertinent information about prospective deals. They examine the feasibility of a deal and prepare a plan of action based on financial analysis.

1. Being an analyst requires a vigilant awareness of financial trends.
2. Analysts have a heavy reading load, keeping abreast of news stories, market movements, and industry profiles in financial newspapers, magazines, and books.
3. Most analyst jobs are in banking houses or for financial-advising firms, which means following corporate culture and wearing corporate dress.

If a deal demands it, they must be prepared to travel anywhere for indeterminate lengths of time. Those who wish to rise in the industry should note the necessity of significant “face time,” attending social events and conferences and spending downtime with people in the profession, which can be expensive; this social circle tends to gravitate to high-priced attire and costly hobbies, habits, and diversions.

• Analysts sacrifice a lot of control over their personal lives during their first few years, but few other entry-level positions provide the possibility of such a large payoff come year’s end.
• Many employers use bonuses, which can be equal to or double the beginning analyst’s salary, to attract and hold intelligent personnel.

Successful financial analysts become senior financial analysts or associates after three to four years of hard work at some firm. Those with strong client contacts and immaculate reputations start their own financial consulting firms. Many work as analysts for about three years and then return to school or move on to other positions in banking.

Financial analysts work long hours, and deadlines are strict. “When you have to get the job done, you get the job done. Period,” emphasized one. The occasional fifteen-hour day and night spent sleeping in the office is mitigated by the high degree of responsibility these analysts are given. The long hours breed a close kinship.

Over 65 percent called their co-analysts extremely supportive, and many labeled them a “major reason” they were able to put up with the demanding work schedule. Most people become financial analysts because they feel it is the best way to immerse themselves in the world of finance and a great way to earn a lot of money.

What is the difference between a financial analyst and an investment banker?

Key Takeaways –

Financial analysts and investment bankers are both job titles held by financial professionals, but they have different duties and expectations.Financial analysts may work for a financial institution or any other type of company to do capital markets research, corporate accounting, and financial analysis.Investment bankers typically work for a financial company and specialize in raising capital for other firms.

What makes a good financial analyst?

Full Text: Every company has employees who analyze its financial data and enhance its decision support process by providing their insights and analyses to management. In some companies the CFO, controller, or accounting staff performs this function in addition to their regular responsibilities.

• In other companies the process is more formal, with financial analysts, cost accountants, and even whole departments dedicated to this function.
• No matter which way it’s done, effective financial analysis is really more a way of thinking than a series of steps or processes.
• Financial professionals who are effective at financial analysis can add value to their companies and excel in their careers.

Good analysts identify cost-savings ideas, revenue growth opportunities, and strategies for productivity improvements. Even people who work with financial data but don’t do regular analysis (general ledger, accounts payable, financial systems staff) can benefit by building an analytic approach into the way they perform their jobs.

People who are great financial analysts exhibit several key qualities-qualities we strive to develop in WellPoint, Inc.’s Central Region. Billions of dollars in health insurance premiums and medical expenses are realized every year in the Central Region, and it’s my department’s job to forecast and analyze this financial data and other statistics.

We work with the leadership of the Central Region to help them meet their strategic objectives. First, let’s address what it takes to be a good financial analyst. Then we’ll discuss what it takes to be a great one. GOOD FINANCIAL ANALYSTS The seven qualities of a good financial analyst are listed below.

• Read through their descriptions and think deeply about whether you possess them.
• Then fill out Table 1 to see where you stand.1.
• Understand the concept of materiality.
• Good financial analysts can draw conclusions with incomplete information and have a feel-an educated gut feel, perhaps-for when information is relevant and when it isn’t.

In some cases the information is measurable, like the dollar magnitude of a transaction or the level of a variance percentage to budget. In others it’s more intangible, like knowing the amount of detail to present to an accounting manager vs. the CFO. One of my financial analysts explained it as the concept of cost vs.

Benefit: the concept of knowing when you have reached a point where spending more time on an analysis won’t provide enough benefit to continue. Accountants and computer programmers sometimes have a hard time making the transition to financial analysis jobs because of their focus on numbers and order.

A standard question I ask during a job interview is “What does materiality mean to you?” The applicants who tell me it means doing whatever it takes to get something to tie to the penny usually don’t get a second interview.2. Are good at using spreadsheets and databases to analyze information.

Good financial analysts know how to apply the tools available in spreadsheets and databases to pull together disparate data, solve problems, and present information to management. Experience with using all of the features of these tools isn’t as important as an awareness of them and knowing when to use them, though a strong understanding of pivot tables and query design will go a long way.

Further, it’s important to know the needs and personal style of the individual(s) for whom the work is being done. Some managers prefer information in a visual format like graphs, while others like it all laid out for them in detailed financial tables.

Ultimately, it’s all about turning data into conclusions. In my department at WellPoint we developed a Technical Skills Assessment that each analyst uses to assess their level of ability in Microsoft Excel, Microsoft Access, and other tools. These Assessments help me work with my staff to identify opportunities for their development and also give us a reference tool for locating experts in the features of each tool.3.

Understand management accounting concepts and apply them to their business. We all learned many valuable concepts in our undergraduate and MBA courses, but most financial analysts don’t utilize them fully in their jobs. Good financial analysts remember these concepts and are able to apply them.

For example, analysts responsible for departmental budgets are skilled at using variance analyses and activity-based costing (ABC) techniques. Those in capital intensive industries are skilled at applying return on investment and breakeven analyses. And those developing growth strategies will use contribution margin and incremental costing analyses.

Statistical methods are also often untapped, mostly because we tend to forget them after completing our degrees. Good financial analysts find ways to use statistics to locate patterns in their data. Obviously, a great way to develop these skills is to become a Certified Management Accountant (CMA) and/or Certified Financial Manager (CFM). Preparing for the exams refreshes your knowledge and lets you practice in areas where you may feel rusty, and earning the actual certification demonstrates your excellence.4.

1. Navigate successfully through their company’s financial systems and informal people networks to get data and information.
2. Good financial analysts know their company’s financial systems-General Ledger, Sales, Inventory, etc.-and the limitations of the data they contain, and they can extract data from them for further analysis in spreadsheets and databases.

Also, knowing whom to ask for help or for answers is just as important as the financial systems. Informal people networks don’t follow the corporate chain of command, so it may take several calls at first to identify the people who can help, but these networks are very effective once they are established.

1. It’s hard to have both technical skills and people skills since they require very different talents, but each can be developed with awareness, focus, and practice.5.
2. Possess a solid understanding of their company’s products, markets, and processes.
3. Good financial analysts can add value by understanding how their analyses relate to the business.

Knowing the company’s major revenue sources (products, customers), key computer systems, workflow processes, and geographic distribution will provide insights into the components of revenue and expense that should be analyzed. For example, an analyst who knows that 30% of a company’s revenue is generated by one product will monitor that product’s sales very closely and be in constant contact with the product manager when doing financial projections.6.

Take the initiative to improve in each of these areas and have a continuous-improvement mentality. Good financial analysts always look for ways to be more effective in their work and pursue the training that will enhance their abilities, such as learning to use analysis tools more effectively. Good analysts aren’t satisfied with current improvements and are always looking to enhance themselves and their business, so they seek advice on how to improve existing processes.

In my department, for example, a monthly task that once took eight hours to complete manually is now automated and takes only two hours.7. Include insights and questions when distributing a report or analysis. Many analysts just want to complete the report, check it off their list, and move on to the next task.

Good financial analysts will resist this urge. They will not only take the time to review the report for accuracy but to determine what it says about the business. Then they pass on any observations and questions to management when they deliver the analysis. This process works best if they set aside the analysis after it’s complete and then revisit it later with a fresh perspective.

Good analysts consider their work to be analysis rather than reporting. If you can do only one thing differently, work on this quality because it will make the most impact. FROM GOOD TO GREAT How did you do in Table 1? Are you a good financial analyst? These are skills you should expect from yourself and that any manager should expect from their staff.

At WellPoint, our financial analysts are working to become not just good, but great financial analysts. Several key qualities exhibited by great financial analysts are shown in Table 2, and, as you can see, they are enhanced versions of the skills good financial analysts possess. As you did with Table 1, read the following descriptions and think deeply about whether you possess the qualities of a great financial analyst.

Then fill out Table 2.1. Feel bothered when analyzing issues that aren’t material. Great financial analysts understand the importance and relevance of their work. They have a strong sense of priorities and of what is important to their company, which results in the emotional reaction of “feeling bothered” when they are working on issues that aren’t material.

1. This doesn’t mean they neglect someone who needs help researching a small issue, but, if their instinct tells them they are wasting their time, they talk to the requestor-even a superior-about what course of action would be best for the company.2.
2. Take a top-down approach to analysis and investigation.

Great financial analysts don’t get lost in the detail but start from the highest level and work downward until they experience insights-those a-ha! moments. They are always aware of the “big picture” reason for their analyses and are able to come back to this high level after doing detailed work.

They understand their company’s mission and objectives and how their role relates. They also delegate effectively if they are in a manager or team leader position.3. Think like an entrepreneur. Great financial analysts look at their company’s key financial and performance measures and think about ways to make more money, grow market share, etc.

They are driven by the desire to find opportunities and threats and to locate innovative ways to answer key questions. They actively offer their thoughts to key decision makers and enjoy discussions about the business with management and their peers. People come to them for ideas on how to solve problems, and they are often included on cross-functional teams.4.

• Understand concept over process.
• Remember the statement that effective financial analysis is more a way of thinking than a series of steps or processes? Well, all financial professionals have processes-like the monthly close process-that are part of their work routine.
• But some don’t understand the process and follow a set of steps while being oblivious as to whether they make sense.

Others understand the process and its intricacies and are able to adjust to any disturbances or disruptions. But they still don’t understand what value the process adds to their company or how it fits in with other key processes. Great financial analysts understand the true concept of the process and sniff out unnecessary processes to eliminate. 5. Understand how external factors affect their company. Great financial analysts can anticipate how changes in the industry or economy will affect their business. They realize the impact of competitor and government actions, and they understand the expectations of shareholders, stock analysts, and rating agencies.

They create models and scenarios based on possible outcomes of these factors and share them with management.6. Constantly seek customer feedback and interaction. First, great financial analysts understand who their customers are: managers, peers, other departments. They ask them how they can provide better service, sometimes even using questionnaires to collect this feedback.

And they seek frequent interaction with their customers to learn more about their needs. Great analysts also poll the people on their distribution lists to find out whether they want to continue receiving the analyses they send to them and whether they recommend any changes.7.

• Have the ability to tell the story behind the data.
• Great financial analysts are truly able to take a piece of paper full of numbers and effectively communicate insightful conclusions about the key points within the numbers-in a clear, concise manner.
• If a financial professional wants to be an effective CFO, he or she needs this skill more than any other.

In my department, we developed an analyst test to use with potential job candidates. It shows a series of financial results for a fictional insurance company and asks the interviewee to describe what they see happening in the numbers (tell the story).We have found this to be one of the best indicators in determining whether someone is well suited for our department and our team.

GO FOR THE GREAT! Increasing global competition and the pace of change require companies to have a stronger ability to analyze, predict, and improve their financial results. Financial managers can enhance the value of their teams by coaching them to be great financial analysts, and individuals can set themselves apart if they demonstrate superior financial analysis skills.

Although these skills don’t come naturally for many people, they can be developed and enhanced over time. Now take another look at your scores from Tables 1 and 2. Share your assessment with your supervisor, and commit to working on the skills that need development.

Keep Table 3 nearby as a handy reference-it shows the transition from good to great. If you become a great financial analyst, your department-and your company-will become great as well! Table 1: Good Financial Analysts 2 points for the qualities in which you are very strong 1 point for the qualities you possess but could develop further 0 points for those you don’t have and need to develop – 1.

Understand the concept of materiality. – 2. Are good at using spreadsheets and databases to analyze information. – 3. Understand management accounting concepts and apply them to their business. – 4. Navigate successfully through their company’s financial systems and informal people networks to get data and information.

5. Possess a solid understanding of their company’s products, markets, and processes. – 6. Take the initiative to improve in each of these areas and have a continuous-improvement mentality. – 7. Include insights and questions when distributing a report or analysis. – Total Score You are a GOOD FINANCIAL ANALYST if you score 10 or higher.

Table 2: Great Financial Analysts 4 points for the qualities in which you are very strong 2 points for the qualities you possess but could develop further 0 points for those you don’t have and need to develop – 1. Feel bothered when analyzing issues that are not material.

• 2. Take a top-down approach to analysis and investigation. – 3.
• Think like an entrepreneur. – 4.
• Understand concept over process. – 5.
• Understand how external factors affect their company. – 6.
• Constantly seek customer feedback and interaction. – 7.
• Have the ability to tell the story behind the data.
• Subtotal – Score from Table 1-Good Financial Analysts – Total Score You are a GREAT FINANCIAL ANALYST if you score 30 or higher.

Table 3: Making the Transition Good Financial Analysts: Great Financial Analysts: 1. Understand the concept 1. Feel bothered when of materiality. analyzing issues that are not material.2. Are good at using 2. Take a top-down spreadsheets and approach to analysis databases to analyze and investigation.

Information.3. Understand management 3. Think like an accounting concepts and entrepreneur. apply them to their business.4. Navigate successfully 4. Understand concept over through their company’s process. financial systems and informal people networks to get data and information.5. Possess a solid 5. Understand how external understanding of their factors affect their company’s products, company.

markets, and processes.6. Take the initiative to 6. Constantly seek improve in each of customer feedback these areas and have a and interaction. continuous improvement mentality.7. Include insights and 7. Have the ability to questions when tell the story behind distributing a report the data. Note: Anthem, Inc. acquired WellPoint, Inc. in November 2004, retaining its headquarters in Indianapolis, Ind., but changing its name to WellPoint, Inc. In addition to being the largest healthcare company in the U.S., WellPoint, Inc. is also the largest Blue Cross and Blue Shield licensee, with health plans stretching from California to Maine.