Stages of financial analysis

In principle, the analytical work consists of three stages. The first is a preparatory phase, whose task is to collect information relevant to the subject of analysis, from all possible sources. This is followed by the main stage, during which the analyst to compile the information and synthesizes it, discarding all superfluous and insignificant.

But the most difficult is the third phase, during which the analyst will need to make their own picture view of the situation and give the correct prediction about the future of any stock, futures, options, etc. This is far from over, but those who thrive in the third stage, and become highly qualified specialists in financial analysis.

As already mentioned, in the process of financial analyst, drew attention not only on financial performance (although they are major), it produces an analysis of economic indicators: macro-and microeconomic efficiency of financial and non-company structures, the quality of its management and others . Therefore, experts identify the following components of a skilled financial analyst:

high level of knowledge economy as a whole;
very good knowledge in accounting and financial reporting;
ability to investigate the state of the object, which is expected to make investments;
knowledge of the theory of markets and the changes that occur in it;
understanding of the mechanism of action of a specific market, its effectiveness, the relationship of risks and profitability.