What does a financial analyst do?

In the business world, the figure of the financial analyst is central to the success of projects. However, do you know exactly what these professionals do?

At Universidad Europea, we have always been committed to offering education and training that allows our students to become top-level financial analysts. Indeed, we offer a wide range of programmes to suit all needs and levels of experience, such as the master in Business Administration, the bachelor in Business Administration, Global Bachelor´s Degree International Business, or the Business Management Degree in Valencia.

If you are interested in working in the financial sector, but you are still not sure if you want to dedicate yourself professionally to analysis, in this post we clear up any doubts you may have. Read on to find out what role financial analysts perform and what they do within any given organisation.

What is a financial analyst?

Financial analysts are professionals trained to interpret different economic data, which allows them to advise their clients or their companies in decision-making, helping them to obtain the maximum possible benefits. They do not only diagnose the current situation of the organisation, but also predict future scenarios that may affect the results.

To do their job, financial analysts use information provided by different organisations, companies and institutions in the sector. In order to interpret it, they must have a number of specific competencies, such as analytical capacity and computer skills.

The role of a financial analyst

While the tasks may vary depending on the size of the organisation, the following is an example of some of the typical roles a financial analyst carries out:

• Analyse the financial situation of the company.
• Collect data, study it and draw up financial investment plans for your company or client.
• Write periodic reports and prepare graphs for accounting analysis.
• Be informed on a daily basis of the international economic situation and the movements that take place.
• Use different technological tools to anticipate future scenarios.
• To set out the most recommendable economic strategies for each scenario.
• Monitor your company's or client's investments to see what state they are in and whether

What makes a good financial analyst?

In view of the functions described above, it is obvious that advanced mathematical knowledge is a prerequisite for a career in this area, but it is not the only requirement. Financial analysts need to manage time and resources effectively, so organisational and planning skills are equally important. In addition, due to the very nature of the job, attention to detail is essential.

And we cannot forget soft skills. In addition to conducting in-depth studies, analysts need to be able to present the results effectively to their clients and convince them that the measures they are proposing are the right ones. In this respect, communication skills and emotional intelligence will be their greatest allies.

Where does a financial analyst work?

Despite what it may seem, analysts do not only work in financial institutions, but virtually all large companies have such a professional in their finance department. Another option that many choose is to work as a freelance analyst and be a consultant for different organisations that hire your services.

In addition, it should be noted that the role of financial analysts varies greatly depending on who your employer is, as each company has different needs:

• In the procurement sector, many companies require the services of an analyst to refine their investment strategy. In these cases, the analyst will need to calculate risk levels and advise the company.
• In the banking world, the main task of analysts is to design financial marketing and commercial strategies.
• In insurance, they are responsible for monitoring and forecasting funds.
• In the financial sector, their job will be to study the performance of current investments in order to make performance-based recommendations.

What do you have to study to become a financial analyst?

Although there are various master's degrees and MBAs geared towards this sector, there is no one degree that focuses exclusively on financial analysis. Therefore, in order to work in this field, you will need to have a degree in Mathematics, Business Administration and Management, Statistics, Economics or Accounting.