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Hello Amittora, You answered my question before, with in that questionYou mentioned that the FA should analyze macro-economic conditions, which is true; however, the FA

Hello Amittora,

You answered my question before, with in that questionYou mentioned that the FA should analyze macro-economic conditions, which is true; however, the FA must also determine how those conditions impact the business operations of a company in order to make recommendations regarding changes that would propel the organization forward. Which ratio do you believe is the most indicative of a company's performance?

image text in transcribed Assignment Grading Course: Name Solution Yours Name Professor's Name [optional] University It's a good question but the job title itself say more to predict. Yes, financial analyst is a person who collect the financial information, analyze, and put recommendation to the company, customers, or clients based on the analyzed results. There are different types of financial analyst such as; Securities Analysts, Investment Analysts or Ratings Analysts and these all types of person work for different types of companies and do their job in their respective job responsibilities, Leon Wansleben (2012). Financial Analysts always require to remain curious in collecting the data on the macro economy and information about particular company, and the fundamental micro economy of the company's balance sheets. They always set their objective to make their efforts to stay Company on top of financial news for which they require to do deep study and keep update on latest information of the particular domain. They also require to read The Wall Street Journal, The Financial Times and The Economist as well as financial websites, Leon Wansleben (2012). Further, they require to have good analytical skills, proficient in spreadsheets, in relational databases and should be comfortable with statistical and graphics packages in order to develop recommendations for senior management and prepare the presentations to present as well as financial reports which include forecasting, cost benefit analysis, trending and results analysis, Leon Wansleben (2012). Financial Analyst evaluate the financial performance of the company by allowing themselves in calculating the financial ratios which are available in balance sheets such as; solvency ratios, quick ratio, current ratio, debt/equity ratios, activity ratios, Days Sales Outstanding, Days Inventory Outstanding, Days Payable Outstanding, Cash Conversion Cycle, Turnover Ratios, Average Age of Inventory, Intangibles to Book Value Ratio, Inventory to Sales Ratio, Capital Structure Ratios, Debt to Equity Ratios, and few more which require to do efficient forecasting by considering macroeconomic as well as microeconomic factors, \"Financial Ratios Based on the Balance Sheet\". References \"Financial Ratios Based on the Balance Sheet\". Retrieved fromhttp://www.accountingcoach.com/financial-ratios/explanation/2 Leon Wansleben (2012). "Financial Analysts' In: K. Knorr Cetina & A. Preda (Eds.)", Handbook of the Sociology of Finance, Oxford: Oxford UP

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