Financial Analyst Manager Internship Interview Questions
The interviewer may also ask the candidate to demonstrate their proficiency in Excel or other financial software they will be using during the internship. The candidate should be prepared to answer both technical and behavioral questions, with examples from their previous work or academic experience.
Overall, the interviewer is looking for someone who is enthusiastic about the financial industry, is willing to learn, has strong analytical skills, and can work collaboratively in a team environment.
Interviewer: Hello and thank you for coming in today. Can you please tell us a little bit about yourself and what you hope to gain from this internship position?
Candidate: Thank you for having me, I’m excited to be here. Well, I recently graduated from XYZ University with a degree in accounting and I am looking to gain hands-on experience in financial analysis. I hope to learn about corporate finance and investment management and how they apply to the real world.
Interviewer: Great, that’s good to know. In this position, you will be working with a team of professionals, what experience do you have working with teams?
Candidate: Throughout my academic career, I have had the opportunity to work on group projects where teamwork is crucial. In addition, I have previously interned at a small accounting firm where I was part of a team responsible for auditing financial statements. I understand the importance of effective communication and collaboration when working in a team and always strive to contribute to the group and ensure deadlines are met.
Interviewer: Good to hear that. In your opinion, what do you think are the most important qualities for a financial analyst manager?
Candidate: I feel like the most important qualities for a financial analyst manager are leadership, strategic thinking, decision-making, and analytical skills. Strong communication and problem-solving skills are also crucial in effectively managing a team.
Interviewer: That’s a good answer. Can you tell us about your experience with financial modeling and forecasting?
Candidate: In school, I have completed coursework in financial modeling where I gained experience using Excel to analyze financial data and create financial models. I have also conducted research on industry trends and market fluctuations in order to create accurate financial projections. Additionally, I have experience using statistical software to run regression analysis and create forecasts.
Interviewer: That sounds like you have a good background in the field. Can you tell us about a project where you used your analytical skills to solve a problem?
Candidate: During my internship at the small accounting firm, I was responsible for auditing financial statements. One project that stands out was when I was tasked with identifying discrepancies in a client’s financial statements. By analyzing the data and conducting research, I was able to identify a few errors that had been overlooked. I recommended changes and worked with the team to fix the mistakes.
Interviewer: That’s great, it shows hands-on experience in the field. Can you tell us how you stay current with the latest industry trends?
Candidate: I stay current by reading industry publications, attending networking events, and participating in webinars. I also follow industry thought leaders on social media and throughout discussions with other professionals in the field.
Interviewer: Good to know that you stay up-to-date. Can you tell us about a time you had to meet a deadline and how you approached it?
Candidate: In school, I had a case competition where my team was tasked with creating a financial analysis report and presenting it to a panel of judges in just three days. In order to meet the deadline, I created a checklist of each task I needed to complete and structured each day with specific objectives. I prioritized the high-level tasks first and then delved into the smaller details, making sure that we were ready to present on the final day.
Interviewer: That shows good time management skills. How do you handle stressful situations?
Candidate: I handle stress by taking a step back, taking a deep breath, and then making a plan of action. I find that breaking down the problem into smaller tasks makes it more manageable.
Interviewer: Good to know that. Can you tell us about a time when you had to present your findings to a group of people?
Candidate: In school, I presented my findings on a research project on an industry analysis of the media industry to a group of my peers and professors. We had a presentation that was expected to last for 15 minutes, which was followed by a question and answer session. I prepared thoroughly for the presentation and practiced repeatedly until I felt confident and comfortable with the material.
Interviewer: That’s good to know. Can you tell us about your experience with financial statement analysis?
Candidate: I have studied financial statement analysis as part of my coursework in school and I have also worked with financial statements during my previous internship. I gained experience using financial ratios to analyze a company’s financial position, including liquidity, profitability, and solvency ratios.
Interviewer: That’s good. Can you tell us about a time when you had to make a decision about an investment that may have gone against popular opinion? How did you handle it?
Candidate: In school, my team and I were assigned to evaluate an investment opportunity. Although the investment would push us out of our comfort zone and it was not the typical style of investment that others were pursuing, after careful analysis, we found the investment to be attractive. We laid out our analysis and presented to the class, receiving a good response.
Interviewer: That’s good to know. How would you describe your attention to detail?
Candidate: My attention to detail is outstanding. I take pride in the work that I produce and understand that even the smallest mistake can have a significant impact. I always triple-check my work to ensure that it is accurate, and I never compromise on quality.
Interviewer: That’s good to know. Tell us about a time when you had to adapt to changes in a project or assignment.
Candidate: During my internship, I was working on a project that was suddenly changed midway through. As a team, we had to pivot our approach and reorganize our work to meet the new deadline. We split the work into different segments and quickly got to work, using our understanding of previous assignments to set the new stage.
Interviewer: That’s good to know. Can you tell us how you would measure the success of an investment?
Candidate: The measure of success of an investment is dependent on the investor’s objective. Whether it is capital gains or recurring income, it's essential for the investment to generate a return that meets the investor’s objective. It's also essential to consider the level of risk that was assumed to generate the returns. Risk-adjusted return and portfolio analysis are two measures that can be utilized to evaluate investments.
1. Scenario: A company is considering investing in a new project that has an upfront cost of $50,000 and is expected to generate $20,000 in annual cash flows for the next five years. What is the project's net present value (NPV) using a discount rate of 10%?
Candidate Answer: To calculate the NPV, I would discount each year's cash flow using a 10% discount rate and then subtract the initial investment cost. Using this method, the NPV of the project would be $6,960.
2. Scenario: A company's income statement shows total revenue of $500,000, cost of goods sold of $250,000, and operating expenses of $150,000. What is the company's operating profit margin?
Candidate Answer: The company's operating profit margin is calculated by dividing the operating profit (which is total revenue minus cost of goods sold and operating expenses) by total revenue. In this case, the operating profit is $100,000 and the total revenue is $500,000, so the operating profit margin is 20%.
3. Scenario: A company's balance sheet shows total assets of $1,000,000 and total liabilities of $500,000. What is the company's debt-to-assets ratio?
Candidate Answer: The debt-to-assets ratio is a measure of a company's financial leverage, calculated by dividing total liabilities by total assets. In this case, the debt-to-assets ratio would be 0.5 or 50%.
4. Scenario: A company is considering two investment opportunities. Investment A has an initial cost of $100,000 and is expected to generate annual cash flows of $25,000 for the next five years. Investment B has an initial cost of $150,000 and is expected to generate annual cash flows of $40,000 for the next five years. Which investment has the higher internal rate of return (IRR)?
Candidate Answer: To calculate the IRR for each investment, I would need to find the discount rate that makes the net present value of the cash flows equal to zero. Using this method, I found that Investment A has an IRR of 15%, while Investment B has an IRR of 16.4%. Therefore, Investment B has the higher internal rate of return.
5. Scenario: A company is comparing two different financing options. Option A involves taking out a $100,000 loan with an interest rate of 5% and a term of five years. Option B involves selling equity in the company for $100,000 with an expected annual return of 10% for the next five years. Which financing option has the lower cost of capital?
Candidate Answer: The cost of capital for each financing option can be calculated as the discount rate that makes the net present value of the cash flows equal to zero. Using this method, I found that the cost of capital for Option A is 7.72% while the cost of capital for Option B is 10%. Therefore, Option A has the lower cost of capital.