Financial analyst forecasting methods include: (1) year over year growth rates, (2) regression analysis, (3) bottom up analysis, (4) top down analysis, and other approaches. These financial analyst forecasting methods are used to project a company’s revenues, expenses, operating costs, income statement, balance sheet and cash flow into the future. This projection will then be used for making business decisions, valuing the company, and for corporate transactions.
Below is a break down of subject weightings in the FMVA™ financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.
A well rounded financial analyst possesses all of the above skills!
CFI is the global institution behind the financial modeling and valuation analyst FMVA™ Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.
In order to become a great financial analyst, here are some more questions and answers for you to discover: