Job Duties      

Financial Analysts may:

Monitor fundamental economic, industry, and corporate developments through the selective analysis of information obtained from financial publications and services, investment banking firms, government agencies, trade publications, company sources, the Internet, and personal interviews  

Research, compile, and prepare data for financial studies to determine potential business investment or corporate development, by examining financial standing, fiscal responsibility, history, compatibility and long-range stability of an institution  

Develop, implement, and use tools for managing and analyzing financial portfolio   

Analyze corporate financial statements to determine liquidity, earnings, earning potential and overall financial strength of a business  

Analyze the financial impact of corporate/departmental programs and recommend remedial measures, if necessary  

Interpret data concerning investments including their price, yield, stability and future trends to produce forecasts and recommendations

Analyze cash management to ensure funds are available for payroll, operating expenses, taxes, and claims

Evaluate cost and profit data to determine price structure for products and services, if employed by an industrial firm  

Determine the prices at which securities should be syndicated and offered to the public  

Take a look at Financial Analysts at work!   

The tools, equipment, and materials used may include:  

OCCUPATIONAL SPECIALTIES   

Financial Analysts may specialize in specific areas.  

160.267-026 INVESTMENT ANALYSTS conduct analyses of information affecting the investment decisions of financial institutions such as banks, insurance companies, and brokerage and investment houses. They may specialize in a specific investment area, such as bond, commodity, equity, currency, or portfolio management.  

160.267-022 CREDIT ANALYSTS evaluate credit data to determine the amount of risk involved in lending money to commercial customers and prepare a report of findings.  

In addition to learning about these specialties, you may also find it helpful to explore the following Career Exploration scripts:

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WORKING CONDITIONS AND REQUIREMENTS   

Financial Analysts usually work for large firms as part of a financial analysis group, and only occasionally work alone if self-employed or if they work for a small business. Entry-level Financial Analysts are usually supervised by senior Financial Analysts. A Financial Analyst manager is responsible for providing direction, training, and evaluation to employees of the unit.  

Financial Analysts generally work 40 hours a week. They may work overtime on special projects or when deadlines dictate. Financial Analysts work under pressure when their analyses are urgently needed to make quick or critical business decisions. Limited travel may be necessary to atted professional conferences or to evaluate the management of potential investments.  

Many employers encourage their Financial Analysts to join professional associations such as the Chartered Financial Analyst Institute or the American Association for Budget and Program Analysis . College students interested in careers in financial analysis may join the Financial Management Association . Members of these associations must pay periodic dues.   

You Should Prefer:

• Performing activities which communicate ideas/information to others

• Performing activities which require thought and analysis

• Activities which bring recognition and appreciation from others  

You Should Be Able To:

• Reason clearly and logically

• Communicate effectively, both orally and in writing

• Perform mathematical operations quickly and accurately

• See detail/errors in numbers/spelling in written/numerical data

• Rate information using personal judgment or measurable standards
   
• Work within precise limits or standards of accuracy

• Understand and use personal computers and related equipment

• Use your hands and arms to reach for, handle, and manipulate objects

 Math Problem You Should Be Able To Solve:  

If a company made a profit of $100,000 last year and profits are expected to grow by 5% next year, what are the expected profits for next year?   

Reading Example You Should Be Able to Read and Comprehend:   

The income statement, or profit-and-loss statement, shows how much a business has earned or lost over a period of time. 

Writing Example You Should Be Able to Produce:  

You should be able to write a report explaining the need for economic change for the sake of the finances of the company. 

Thinking Skill You Should Be Able to Produce:   

You should be able to decide the best way to better a slumping company's finances.  

Many employers, particularly those in the investment and banking sectors, are specifying the Chartered Financial Analysts (CFA) or CFA Candidate designation when recruiting Financial Analysts. The Chartered Financial Analyst Institute confers the professional title of CFA upon members who successfully complete three comprehensive examinations on a defined body of investment knowledge, earn a bachelor's degree, have four years of experience in investment related work, comply with the CFA Institute Code of Ethics and Standards of Professional Conduct, and pay appropriate fees. A CFA candidate is a member currently studying for and taking the three levels of exams.

EDUCATION AND PREPARATION OPPORTUNITIES     

NOTE: A Bachelor's Degree (four years of study beyond High School) or a Master's Degree (five to six years of study beyond High School) may qualify a person for this occupation.  

The following education and preparation opportunities are helpful in preparing for occupations in this Career Exploration script:   

***SCHOOL SUBJECTS***

0600 BUSINESS , 0700 CAREERS , 0900 COMMUNICATIONS , 1000 COMPUTERS , 1100 ECONOMICS , 2200 MATH , 3300 TECHNOLOGY  

***VOCATIONAL EDUCATION PROGRAMS***    

There are no Vocational Education Programs related to this Career Exploration script. 

Students should obtain the local Education & Training Opportunities for information on what happens to students who successfully complete a program. This information is available at each high school or career/technical center.

***POSTSECONDARY PROGRAMS***  

018 BANKING & FINANCE  

Programs in Banking and Finance are designed for those who want to work in financial institutions. Such programs are also useful to present employees who desire to upgrade their skills. Banks, savings and loan associations, credit unions, trust companies, credit agencies, and lending institutions are among potential employers. 

Courses vary from school to school and depend on the degree level of the program. Courses may include:

049 ECONOMICS   

Programs in Economics provide opportunities to gain the knowledge and skills needed for employment applying economic theory and interpreting economic data. Employment may be found in business, industry, government, or education. Individuals who teach Economics at the secondary school level must have a Michigan Teaching Certificate .   

Courses vary but may be offered in the following areas:  

Search for a College and/or Instructional Program

 ***APPRENTICESHIP OPPORTUNITIES***   

There are no Apprenticeships related to this Career Exploration script. 

There are no Military Programs related to this Career Exploration script.  

E-Learning Courses and Programs

OPPORTUNITIES FOR EXPERIENCE AND METHODS OF ENTRY     

Postsecondary programs in banking and finance and economics may offer a co-op portion through which experience may be gained. The United States Department of the Treasury and the U.S. Securities and Exchange Commission are two federal agencies that participate in the Federal Cooperative Education Program , offering the chance to gain work experience and an income while attending college.   

School-to-Work opportunities include:   

Informal apprenticeships   

Mentorships  

Job shadowing experiences   

Touring a local Financial Analyst employer   

Volunteer work with a Financial Analyst employer   

Community service work with an agency 

The most common method of entry is direct application to financial institutions, or to brokerage or large industrial firms employing financial analysts. Those hired usually begin as trainees. For assistance in locating a job, contact college placement offices and Michigan Works! local offices . Openings are often listed in classified ad sections of newspapers or professional or trade journals, such as the "Wall Street Journal" . The Chartered Financial Analyst Institute   provides a "Job Line" service for members.  In addition, you should access and search the Internet's on-line employment services sites such as:  

American Association for Budget & Program Analysis Employment   

Financial Management Association International Placement Center   

Business Job Finder   

Careers-in-Finance   

Federal Reserve Board - Career Opportunities    

Michigan Jobs & Career Portal    

Simply Hired    

Indeed | one search. all jobs.   

Career Builder

Yahoo! hotjobs   

Monster Jobs    

You should also enter an electronic resume on these on-line services.  

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EARNINGS AND ADVANCEMENT     

Earnings vary according to experience, level of education and responsibility, geographic region, and professional certification. Generally, those with professional certification or graduate degrees earn a higher beginning salary. Investment banking in the service sector and chemical and pharmaceutical firms in the manufacturing sector pay the highest beginning salaries to finance graduates.  

Nationally, in mid 2008, recent Bachelor Degree graduates working in financial analysis were offered beginning average annual salaries of $51,992. Most offers ranged from $45,231 to $60,000. The median yearly earnings of "all" Financial Analysts in the U.S. were $64,064 in 2007. The median yearly earnings of "all" workers in the U.S. were $36,140 in 2007.

The average annual salaries of Financial Analysts in mid 2008 were:   

In Michigan, in mid 2008, experienced Financial Analysts had average annual earnings ranging from $59,100 to $79,300. Managers earned an annual average of $99,800.  

Financial Analysts employed by the State of Michigan in mid 2009 earned:

Most Financial Analysts receive paid vacations and holidays; life, accident, disability, and hospitalization insurance; and retirement plans. In addition, they usually have stock option and savings plans. Some may have tuition reimbursement plans. These benefits may be paid for, at least in part, by the employer.  

Advancement for Financial Analysts consists of a progressively increasing complexity of analyses projects, increasing responsibility for guidance and review of less experienced workers, and ultimately a supervisory or management role in the financial analysis unit. A career ladder for a Financial Analyst could be: associate Financial Analyst; Financial Analyst; senior Financial Analyst; Financial Analyst manager.

EMPLOYMENT AND OUTLOOK     

Nationally, there were about 220,600 Financial Analysts employed in 2006. Employment for Financial Analysts is expected to increase much faster than the average for all occupations through the year 2016. With new reporting rules created by the Sarbanes-Oxley Act , Financial Analysts are required to follow stringent maintenance and disclosure of financial and accounting records. This may result in steady growth of job opportunities.  About 8.3% of them were self-employed. The industry distribution for Financial Analysts looked like this:

To find employers, click Employer/Business Locator.    

Opportunities will be best for Financial Analysts with Masters of Business Administration (MBA) degrees or those familiar with computer software packages used in financial analysis. Developing expertise in a rapidly growing employment sector, such as health care or e-commerce, could also be an advantage in the job market.   

There are approximately 5,325 financial analysts employed in Michigan. Most work in urban areas for large employers. Many work for large financial institutions in their investment banking departments, brokerage firms, major manufacturing companies, or the government.  

Employment of Financial Analysts in Michigan is expected to grow faster than the average for all occupations through the year 2014.  An average of 140 openings is expected annually with 60 due to growth and 80 due to replacement of those workers who retire or leave the labor force for other reasons.   

Since Financial Analysts are key personnel in major manufacturing corporations, they are rarely subject to layoff. Some limited staff reductions may be experienced by brokerage firms with branch offices in Michigan, however, most Financial Analysts employed by large brokerage houses work in New York City or California.   

MICHIGAN 'S EMPLOYMENT OUTLOOK TO 2014   

*NOTE:  Areas may not add up to state-wide total due to rounding, sampling or statistical errors, and/or confidentiality issues.

SOURCES OF ADDITIONAL INFORMATION     

Printed Occupational information is available upon written request from the sources below.   

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