What is a financial analyst ?

A financial analyst evaluates and analyzes the financial situation of a company or project. They base their work on financial, economic, and social calculations and indicators. The goal is to anticipate future developments and advise company executives on profitable investments to ensure the profitability of their operations.

Adept with numbers, they thoroughly examine a company's financial statements to assess its profitability for investors. This expert diagnoses companies from various angles: profitability, human resources, operations, and organization to identify obstacles to their economic growth.

The financial analyst typically works with other financial professionals such as economists, quantitative analysts, extra-financial analysts, and accountants. They also regularly interact with managers (chief financial officer, general managers) of companies that provide financial data. Based on this data, they conduct a study and financial valuation of the company.

Financial analysts can work in a variety of industries, including retail, banking, and microfinance, wealth management, and administration. Many financial analysts work for brokerage firms, where their role involves making informed recommendations about buying or selling securities. Indeed, the demand for skilled analysts is growing as companies seek to optimize their financial performance.

The job of a financial analyst ​is both challenging and rewarding, placing individuals at the heart of the finance industry where they analyze financial data, guide decision-making, and identify profitable opportunities. In an investment industry filled with potential, analysts must leverage their skills in financial modeling and quantitative finance to maximize returns while managing risk. This position demands not only technical expertise but also strategic insight. Whether on the buy side or sell side, financial analysts provide essential services in investment management, working with stock data, credit risk assessments, and more to support long-term growth for their organizations.

Financial analysts play a vital role in dissecting financial statements, forecasting market trends, and supporting strategic goals. They work with fund managers and investment professionals to make informed recommendations. Emlyon business school offers specialized courses to help aspiring analysts build these essential skills. With experience and education, analysts can achieve coveted titles like CFA charterholder, open doors to new job opportunities, and enjoy competitive salaries in this fast-evolving field.

Here are the main tasks that define the responsibilities of a financial analyst:

• Collect financial and economic information: Analyze company financial documents and statements, including revenues, annual reports, operating results, income statements, losses, and investments.
• Evaluate companies from all aspects: Assess profitability, human resources, and necessary restructurings.
• Analyze results and forecasts: Provide a complete financial assessment of a company based on its financial models.
• Assess the financial risk level: Determine the company's development prospects and make recommendations based on summary reports.

Financial analysts often specialize in areas such as financial modeling, risk assessment, or equity research. Financial modeling involves creating a mathematical representation of a company's financial performance, while equity research focuses on analyzing stocks and other securities to guide investment decisions. These analysts play a key role in financial planning, helping companies build robust investment strategies.

For those interested in a career as a financial analyst, the path begins with education and experience. A solid foundation in finance, accounting, and economics is essential. At emlyon business school, students can learn how to develop financial models, conduct data analysis, and understand financial statements. These skills are crucial for forecasting economic trends and advising clients on investment opportunities.

The financial analyst career path often leads to senior roles, such as portfolio manager or senior analyst. These positions require extensive knowledge of financial markets and the ability to make strategic decisions. With experience, financial analysts may also move into other financial sectors, such as corporate finance or investment banking. The CFA Institute offers the Chartered Financial Analyst (CFA) designation, which is highly respected and can significantly boost career prospects.

The skills and qualities of a financial analyst are as follows:

• Aptitude for numbers and calculations: Essential for analyzing complex financial data.
• Strong financial strategy skills: Develop strategies to optimize investment portfolios and minimize financial risk.
• Interpersonal and communication skills: Effectively convey findings and recommendations to clients and stakeholders.
• Analytical and synthesis skills: Ability to analyze financial data and provide actionable insights.

Financial analysts must also possess excellent knowledge of financial tools and software, such as Excel, to analyze and present financial information. Additionally, they should be familiar with financial modeling techniques and financial planning strategies to guide their analyses. Analysts who specialize in specific areas, such as risk management or portfolio management, can offer more targeted insights to clients and employers.

In addition, they often work closely with other departments within their companies, such as marketing and operations, to align financial strategies with overall business objectives. This collaboration helps in understanding industry trends and making informed investment decisions.

At emlyon business school, the Master in Management - Grande Ecole program has been designed to offer a wide range of career opportunities. Aspiring financial analysts can pursue this high-level MiM degree, which aims at excellence in general management with progressive and customized specialization. This program lasts three to four years, is taught in French and English, and includes an extensive internship period to encourage experimentation and professionalization.

For students with a bachelor’s degree, the School offers Master of Science programs that lead to financial analyst positions. There are several excellent ways to specialize in finance after earning a bachelor's degree:

• The Master in Finance offered by emlyon business school develops solid and in-depth expertise that will enable you to fully understand the challenges and demands of finance. This program offers a common core followed by a specialization in corporate finance or market finance, providing a comprehensive view of financial aspects.
• The Master in Management, Finance & Tech is a triple degree offered by emlyon business school, Bayes Business School, and POLIMI Graduate School of Management. This innovative program combines management skills, strong financial knowledge, and technological expertise, preparing you to become a fintech leader in an ever-evolving financial landscape. Over two years, you will study in three European cities (Lyon, London, and Milan) and gain practical experience through a six-month internship in the dynamic financial sector.

The CFA (Chartered Financial Analyst) designation is also highly recommended for aspiring financial analysts. This credential is recognized globally and demonstrates a commitment to excellence in the field. The CFA program covers essential topics such as financial reporting, investment analysis, and portfolio management, providing candidates with the tools they need to succeed.

The salary range for a financial analyst is quite wide. The average salary is €2,500 gross per month for beginners and can reach up to €10,000 gross per month for experienced professionals. Financial analysts working in investment banks or financial services firms often earn higher salaries due to the demanding nature of their work.

There are many career paths for financial analysts. Some experts move into teaching to share their knowledge, while others transition to senior roles such as senior financial analyst or research analyst. After a few years of experience, a financial analyst may also move into roles related to portfolio management, marketing, or financial engineering. Those who specialize in fixed income analysis or risk management may also find opportunities in real estate or corporate finance.

Furthermore, financial analysts often engage with buy-side and sell-side activities, contributing to the decision-making process in investment firms. Buy-side analysts work for asset management firms, pension funds, and hedge funds, focusing on maximizing returns on investments. On the other hand, sell-side analysts work for investment banks and brokerage firms, providing recommendations on whether to buy, sell, or hold securities.

emlyon business school provides students with access to a wealth of resources to support their career development. These include networking events, internships, and mentorship programs. Students are encouraged to leverage these opportunities to gain practical experience and build connections in the financial industry.

emlyon business school is one of the top business schools in France, ranked in the top four. Founded in 1872, the School offers high-quality education that meets the needs of today's businesses. These programs are delivered by highly qualified professors and researchers from various disciplinary fields. emlyon business school's pedagogy is based on action learning, which emphasizes experimentation.

Graduates of emlyon business school have gone on to work in prestigious financial institutions around the world, contributing to the School's reputation as a leading provider of business education. Whether you aim to become a financial analyst, portfolio manager, or investment banker, emlyon business school provides the foundation you need to succeed. The commitment to excellence and the integration of innovative learning methods ensure that graduates are well-equipped to tackle the challenges of the financial sector.

The School also offers a variety of workshops and seminars to enhance students' knowledge of financial analysis and investment strategies. These learning experiences provide students with a deeper understanding of financial markets and help them develop the skills needed to succeed in their careers.

emlyon business school’s extensive alumni network also provides valuable opportunities for mentorship and career advancement, enabling students to connect with industry leaders and gain insights into the latest trends and developments in the financial sector.