Responsible for collecting and analyzing financial statements about the company’s ability to pay its debts, payment method, date, information about profits, savings, purchase activities, in addition to identifying the risks of failing the company to pay and attempting to minimize potential losses
Therefore, the analyst collects such data and evaluates it. For example, a credit analyst works in a bank or an institution, that issues credit cards, by collecting data about who defaulted, and then analyzes the data, and gives them whether to terminate their credit card or not. He also may be responsible for potential customers seeking new credit
Searches for and analyzes private companies using financial modeling to define the advantages and disadvantages of equity investment. He also works on the evaluation of companies that investors want to invest in, for he manages these companies, investment funds, or private company portfolios. In evaluation, he uses discounted cash flow as well as internal rate of return (IRR) frequently.
As there is no fixed determination of the company’s stock value, he values stocks and then recommends investment
The asset management company is a company that manages the assets and funds of companies and individuals who want to invest and make convenient investment decisions in a timely manner on behalf of their customers, as they increase their financial resources
Here comes the role of the portfolio manager who manages the portfolio and is also responsible for its overall performance as well as diversifying customers’ portfolio to get a higher value and reduce associated risks
On another hand, the financial analyst evaluates both previous and current financial statements. He examines industry and economy trends, looks for investment options, determines best time to buy and sell, and explains decisions and investment strategies in meetings with stakeholders. The analyst here is either buy side or sell side.
Buy side: helps to identify investments that will be purchased and then develops investment strategies for companies that have money for investment such as hedge funds, insurance companies, mutual funds and large non-profit organizations like some universities
Sell side: deals with those who sell investments such as the financial analyst of the company whose role is being responsible for a certain sector such as cement or iron…etc. and follows up their news to reach the fair value and recommend investment
Works in hedge funds or pensions, responsible for applying the fund’s investment strategy and management and, most of the time, takes the decision whether to sell or buy in response to the rapidly changing market conditions
Responsible for budgetary control, coordination between executive directors to implement budgets and specific instructions for proper budget implementation
Provides full information on budgeting for executive directors and the impact of the budget on others while preparing their budgets
Speaks with the executive directors about the requirements of each department and presents them to the board of directors for approval, as well as sharing his own expectations for the company in the next 5 years
Collects Data on real cost and compares them to the figures in the budget and checks whether it is increasing or decreasing, to be able to give his own view of increased investment and production
Gains information from the budget officer and financial reporting, in addition to the data collected on company profitability, liquidity and potential risks as well as information about competitors and industry. He collects all of these and accordingly makes a recommendation to the company regarding cost reduction, higher profitability or improved financial performance
Guarantees the efficiency of institutions’ transactions as well as the banks. He can also work in mortgage companies, investment companies and credit unions.
Often works rapidly as he is required to deliver the reports as quickly as possible in order to complete the loan applications, in addition to approving credit lines and open accounts and other time-sensitive transactions.
Works on various types of transactions on a daily basis. Therefore, the investment bank analyst checks the cash flow and financial statements. Besides, he works on the surveillance of exchange rates, improvement of financial models and the forecast of financial expertise.
The investment bank analyst also works with business men in order to determine transaction improvement opportunities that the analyst participates in; he identifies their problems and their needs.