PANAMA UNIVERSITY

REGIONAL UNIVERSITY CENTER OF PANAMA WEST

FACULTY OF BUSINESS ADMINISTRATION AND
ACCOUNTING

SUBJECT:
English

PRESENTED BY:
Ariadne N. Miranda H.
4-815-212

Teacher:
Lourdes Cordoba

date of delivery:
30/6/2020

School year
2020
 What are the functions of a Financial Analyst?

Financial Analysts are experts in the analysis and interpretation of financial

data. Much of the information they handle is of great value to government
entities, financial institutions, and companies of all kinds. They use their
economic skills to provide employees with an outline of current and future
events that will take place in the financial situation, in this sense, they provide
advice so that their clients proceed in the best possible way.

The versatility of these professionals allows them to assume the position of the
buyer and seller. In the first case, they advise on investment, that is, they
provide the necessary tools and aspects to consider calculating risk factors
applying mathematical and statistical models and principles. For their part,
those who are dedicated to the sales side, study the performance of
investments, prepare reports and make recommendations, and even interact
with colleagues focused on the purchasing sector, to convince them to invest in
the products they represent.

In this sense, Financial Analysts dedicated to the purchasing sector normally

work for companies seeking to diversify their investment and portfolio
strategies, while sales professionals are hired by specialized financial firms.
 Principal functions

 Develop and identify investment strategies aimed at minimizing risks and

losses, in addition to increasing net income:

o Evaluate and determine the risks, study the financial status of the
company, and make projections of its future to make
recommendations based on it.
o Select a group of products, industries, and regions for the
company's investment portfolio.
o Coordinate and keep track of company transactions.
o Manage and implement the necessary corrective actions.

 Analyze investment proposals and financial portfolios to assess risk

factors using various mathematical tools and models.

 Advise investors and company management regarding investment

strategies, in addition to justifying and explaining previously made
decisions.

 Evaluate the investment capacity of the company, determining if there

are sufficient funds for it.

 Monitor the status and development of investments and other financial

projects:

o Analyze profit margins at the end of each month and report

observations made to management or designated operations
leader.
 Prepare monthly, quarterly, and annual financial statements:
o Carry out monthly reviews and cost analysis based on the
assigned budget.
o Interact with the Auditors at the end of each quarter and each year
to assist them in preparing the corresponding reports and in
drawing up the annual budget.

Daily tasks

 Advise clients regarding their investment strategies.

 Study and analyze financial information.
 Analyze and understand economic trends.
 Analyze the financial status of the company to determine its profitability.
 Plans calculate and review budgets.
 Prepare drafts of purchase and sale contracts.
 Prepare and present financial and economic reports.

Responsibilities of a Financial Analyst.

  Analyze financial data to estimate the economic and industrial conditions
of a company.

 Create tables, charts, spreadsheets to prepare reports.

 Analyze and study all the information related to the current market that
may affect investments, performance, prices, business stability and new
business.

 Provide action plans and proposals to companies so that they generate

optimal investments.

 Monitoring and control of general economic movements through the

preparation of balance sheets, publications, and recurring reports.

 Make future economic projections according to the variables of the

current market.

WHAT IS THE MOST IMPORTANT CONTRIBUTION THAT THE FINANCIAL ANALYST MAKES TO
COMPANIES?
As we can see, the professional dedicated to this area does a valuable job within an
organization.

Recently, research carried out by the Carlos III University of Madrid and the Autonomous
University of Barcelona has concluded that those companies that have financial analysts have
made efficient investments and improved their profitability.

But what are the specific benefits that it gives to a company? Below we show you the most
relevant ones.

 Complete advice on what to invest, where and how since, this professional has high
knowledge of opening effective new markets in which to invest or, on the contrary, in
which to give up without a doubt.

 Since the financial analyst knows what happens in each market, he will be able to
effectively monitor the internal and external economy of the company he advises. His
visionary analysis of what is happening in the local, national, and global economy is
highly valued for future decision making in a company.

 Know the performance and stability of your investments. Through the valuation and
evaluation that this professional carry out in the company, it will be possible to
glimpse the future of the same and from there generate adequate profitability
strategies.

 Have a key order and organization of all aspects in financial matters. Many times, good
business organization can reverse bad decisions and augur a promising future.