Financial Analysis Courses

If you want to be a junior analyst, you will need skills to sift through and gather relevant data, create models, and update spreadsheets. If you are looking to be a senior analyst, you will need skills to develop investment strategies, present findings to management and/or investors, and suggest marketing ideas. For either position, a keen understanding of math and finance as well as accounting and data analysis would be helpful. If you would like to build on those skills or are interested in learning them, you can start with an online Udemy course. Although not necessary when first entering the work field, you may acquire a license to become a certified analyst in some countries. Minimum requirements for such a license may include a degree in either finance or accounting, a certain amount of work experience, and a passing grade for a qualifying exam.

Financial analysis tools are methods for assessing and interpreting financial statements for decision-making. Four of the most common tools are common size statements, which present data in the format of percentages; comparative financial statements, which can have data presented in percentages or dollar amounts and are used to analyze changes in various components of the statement for displaying trends; ratio analysis, of which there are multiple variants, that are used to determine various facets of an organization’s finances; and benchmarking, which involves comparing actual performance with previously established targets to determine if targets are being reached.

Three of the most widely recognized certifications are Certified Public Accountant (CPA), Certified Financial Planner (CFP), and Certified Management Accountant (CMA). You can then choose to go on to become a Chartered Financial Consultant (ChFC), a Chartered Financial Analyst (CFA), or a Chartered Investment Counselor (CIC). If you’re looking for a specialized field, you may want to consider being a Financial Risk Manager (FRM), a Chartered Life Underwriter (CLU), a Chartered Alternative Investment Analyst (CAIA), or a Chartered Mutual Fund Counselor (CMFC). The option you choose will indicate your level of education and area of expertise to prospective clients or employers.

Buy-side firms are firms that purchase financial securities and can include hedge funds, investment managers, and pension funds, for example. Entities that are involved in making investment decisions are on the buy-side of the industry. On the other hand, a sell-side firm sells or issues financial securities that can be traded in and may include advisory firms, investment banks, and corporations. Those on the sell-side are those that advise and facilitate the buy-side in making investments. Investment banking firms dominate the sell side of the industry, selling stocks and bonds to both institutions and individual investors.