Why this matters:

Financial analysts need to be masterful with numbers and able to source them from a variety of databases. Depending on the software your company uses, you may be hoping to hear different things from a candidate’s answer. But if they have experience with a variety of systems, you’ll know your company is in capable hands.

What to listen for:

• Candidates may mention software like FactSet and Bloomberg terminals, and research reports from Capital IQ (aka CapIQ) and Thomson One.
• An ideal answer will demonstrate an awareness that there’s no margin for error, so using these tools accurately is vital.

Why this matters:

Financial analysts at all levels rely on reports. Lower-level employees are responsible for discrete elements, such as spreadsheets with financial projections, modeling (especially using Excel macros), regression analysis, and producing numerous charts and graphs in PowerPoint. Senior hires will take their reports even further, putting together a robust financial picture.

What to listen for:

• Listen for references to the data fields and sources the candidate used, and how the resulting reports were used to make decisions.
• For senior positions, answers should also mention the inclusion of written commentary and economic forecasting.

Why this matters:

All analysts have their own process, so this question gives you an insight into how they would approach investment recommendations for your company. After collecting all necessary data, they should be able to come up with multiple investment options to present to management and be comfortable discussing their thought process.

What to listen for:

• Candidates should explain how they’d collect data before making their recommendation—like gathering financial statements and speaking to management to understand overarching goals.
• Listen for indications that they lean on the wider team while still acting independently.