What Does a Corporate Financial Analyst Do?

If you’re thinking about pursuing the CFA^® charter, you may someday find yourself on the career path of a corporate financial analyst. Corporate analysts are valued and respected in business, especially amid increased competition and economic uncertainty. So what does a corporate financial analyst do?

Make Critical Business Decisions

Companies count on financial analysts to help them make important financial business decisions based on data. They play a critical role in business by examining data and providing actionable information on profitability, solvency, stability, and liquidity. Based on data provided by the analyst, the company also writes financial reports and tracks financial movement both in the organization and in the marketplace as a whole.

Collect and Analyze Data

Corporate financial analysts operate every day with the company’s goals and current financial situation in mind. They apply that focus to their work analyzing budgets, income statement forecasts, and other financial data. They collect and summarize data to build complex reports that clearly illustrate the company’s financial status and any risks that may exist. They also establish financial benchmarks against which they measure company performance and produce financial models to help decision makers determine how particular changes in behavior or market conditions could impact the business in the future.

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Make Recommendations

Corporate financial analysts are called upon to keep a finger on the pulse of the business. While analyzing business performance, they often review and compare present data to past and projected performance, as well as the performance of competitors. Their recommendations also take into account industry and internal trends that suggest the future financial trajectory of the business.

Based on their findings, corporate financial analysts are also often counted on to provide out-of-the-box recommendations to help the company bring down costs, increase profitability, or otherwise improve financial performance.

How to Excel as a Corporate Financial Analyst

The best corporate financial analysts understand the evolutionary nature of their job and seek out education and information on market changes to stay updated and informed. As trusted resources to the business, corporate analysts consult regularly with company leaders to focus on strategic decisions for short- and long-term growth. The work that they do ultimately informs and steers organizational changes designed to maintain or improve the financial health of the company.