Finance 3

.docx

School

Southern New Hampshire University *

*We aren’t endorsed by this school

Course

FIN340

Subject

Finance

Date

Jun 9, 2024

Type

docx

Pages

5

Uploaded by HighnessPolarBearPerson1139

Shantavia Burr Southern New Hampshire University Fin 320-Principle Of Finance Yinfei Chen March 24, 2024
Financial Responsibilities: Financial Analyst are responsible for gathering information and data pertaining to a variety of thing that may be relevant. Once the data is gathered, analysts are responsible for organizing the data into a system like excel. With the data being organized, financial analysts begin to analyze the current and past information as well as past results. After all the information has been analyzed it is time to make forecasts about how the company will perform in the future. Lastly, an analyst provides insights and recommendations on how to improve the operations of a business. Financial Management Decisions: Financial analysts identify trends, strengths, weaknesses, and areas for improvement to help management understand the financial health of the organization. Financial analysts identify and assess financial risks facing the company including credit risk and operational risk. They develop risk mitigation strategies to help management understand the potential impact of adverse events and make proactive decisions to minimize risk exposure. Without accurate financial analysis and insights, management may make decisions based on incomplete or inaccurate information, leading to suboptimal outcomes. They may invest in unprofitable projects, allocate resources inefficiently, or overlook potential risks, resulting in financial losses and missed opportunities. Failure to conduct proper financial analysis and reporting can lead to regulatory compliance issues and legal consequences. Accounting Principles
Financial analysts utilize accounting principles as a framework to assess a business's financial health. By examining financial statements such as the balance sheet, income statement, and cash flow statement, analysts can discern crucial indicators like revenue trends, profit margins, liquidity ratios, and debt levels. These metrics provide essential insights into the company's ability to generate profits, manage its resources efficiently, and meet financial obligations. Furthermore, financial analysts compare these metrics with industry benchmarks and historical data to gauge performance relative to peers and identify potential areas of improvement or risk. The absence or inaccuracy of financial information used by financial analysts can lead to a myriad of negative consequences, impacting decision-making, risk management, stakeholder confidence, regulatory compliance, and the company's overall financial health and stability. Financial Statements The income statement provides a summary of a company's revenues, expenses, and profitability over a specific period. The cash flow statement tracks the inflow and outflow of cash within a business, including operating activities, investing activities, and financing activities. The balance sheet provides a snapshot of a company's assets, liabilities, and equity at a specific point in time. To effectively perform their job, a financial analyst requires a combination of education, skills, and tools. Businesses can use the balance sheet to assess their financial position, including liquidity, solvency, and leverage. Businesses can use financial statements to evaluate investment opportunities, such as new projects, acquisitions, or capital expenditures. Financial Terminology i. Financial statement - formal records of the financial activities and position of a business, person, or other entity. (Financial analysts analyze historical financial data to
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
Recommended textbooks for you
Text book image
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Text book image
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:9781260013962
Author:BREALEY
Publisher:RENT MCG
Text book image
Financial Management: Theory & Practice
Finance
ISBN:9781337909730
Author:Brigham
Publisher:Cengage
Text book image
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Text book image
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Text book image
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education
SEE MORE TEXTBOOKS
Recommended textbooks for you
Text book image
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Text book image
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:9781260013962
Author:BREALEY
Publisher:RENT MCG
Text book image
Financial Management: Theory & Practice
Finance
ISBN:9781337909730
Author:Brigham
Publisher:Cengage
Text book image
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Text book image
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Text book image
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education
SEE MORE TEXTBOOKS