Sample interview questions: Can you provide an example of a complex financial analysis you conducted and the insights gained from it?
Sample answer:
Example of Complex Financial Analysis:
Problem: Assess the financial health and investment potential of a biotechnology company with limited revenue and high research and development (R&D) expenses.
Approach:
- Financial Statement Analysis: Evaluated income statements, balance sheets, and cash flow statements to determine revenue growth, profitability, and cash flow generation.
- Market Research: Analyzed competitive landscape, industry trends, and potential market opportunities.
- Scenario Analysis: Developed multiple financial projections based on different assumptions about R&D spending, revenue growth, and market share.
- Sensitivity Analysis: Tested the impact of key variables on the company’s financial performance.
Insights:
- Financial Health: The company’s cash burn rate was high, indicating the need for external financing to sustain operation… Read full answer