Financial data influences almost every organizational decisions, and financial analysts have the expertise necessary to analyze and interpret it. By providing data-based insights, financial analysts contribute to organizational strategies for risk management, resource allocation and long-term growth.
In the Master of Business Administration (MBA) with a specialization in Finance online program at St. Thomas University, graduates develop the expertise and qualifications for competitive roles across various industries. Explore essential financial analyst skills, potential career paths and how to advance as a leader in finance.
What Does a Financial Analyst Do?
Financial analysts assess how organizations can use financial resources to strengthen performance and provide data-based recommendations for budgets and investments. Considering broader economic, regulatory and political factors, they interpret current and historical financial data, evaluate potential investments and guide leaders in allocating capital in line with organizational goals. Depending on their specific role and industry, financial analysts usually maintain these responsibilities:
- Analyze current and historical financial results to identify trends and performance drivers.
- Recommend capital allocation across projects, departments and investments.
- Develop budgets and financial forecasts for teams and organizations.
- Analyze economic, regulatory and industry trends that influence financial performance.
- Evaluate financial statements for profitability, liquidity and valuation.
- Prepare written reports, presentations and data visualizations that communicate findings.
Financial analysts may also work in specialized roles, depending on their industry or market. Some analysts focus on financial risk, while others may specialize in securities or portfolio management.
Essential Financial Analyst Skills
Financial analysts must have strong technical, analytical and communication skills to interpret complex financial data and provide strategic recommendations. These include:
- Technical skills: The ability to build and monitor financial models, manage large data sets and use tools such as Excel and business intelligence platforms to organize and test data.
- Analytical and critical thinking capabilities: The ability to interpret trends, assess risk and align recommendations with financial goals and organizational strategies.
- Communication and presentation skills: The ability to summarize relevant findings clearly and present recommendations that inform and guide stakeholders.
- Industry knowledge and business acumen: An understanding of how specific sectors operate and generate revenue, and an ability to respond to regulations and market shifts and consider financial data in the context of a company’s strategy and risk profile.
Financial Analyst Career Path and Advancement
After completing a bachelor’s degree in finance, accounting, economics, business or a related field, many professionals work in entry-level financial analyst positions as junior analysts or research associates. In these roles, professionals analyze financial models, prepare slide decks and reports and support senior analysts.
As analysts gain experience, they often move into mid-level positions with expanded leadership responsibilities, such as managing parts of an investment portfolio or leading analysis for a business unit. With advanced education and professional experience, financial analysts advance to senior and executive positions, where they oversee teams and departments, collaborate with other leaders and guide financial strategy at the organizational level. While specific roles or titles vary, depending on the industry or organization one is in, common finance career titles include:
- Financial analyst: Reviews data, builds models and communicates findings that support investment or budgeting decisions.
- Portfolio manager: Manages a portfolio of investments, monitoring performance and considering risk and return objectives to adjust holdings.
- Financial consultant: Advises organizations or clients on financial strategy, risk management, restructuring and performance improvement projects.
- Private equity associate: Evaluates and oversees potential deals, conducts due diligence and tracks portfolio performance for investment firms.
- Finance director: Oversees budgeting, forecasting, reporting and financial strategy for an organization or division.
- Finance C-level executive: Guides the financial direction of an organization at the highest level, such as a chief financial officer, with responsibilities for capital allocation, risk management and long-term planning.
Financial Analyst Salary and Job Outlook
Compensation and demand for financial analysts reflect increased reliance on data-driven decision-making across organizations and sectors. The U.S. Bureau of Labor Statistics (BLS) projects employment for financial analysts to grow by 6% through 2034, equating to about 25,000 job openings. This demand largely stems from global market expansion and from new and growing businesses that depend on experts to analyze complex financial data.
Financial analysts earn a median annual salary of $101,350, not including bonuses or other performance-based incentives, with earnings varying by specialization, industry, region and other factors. Professionals in information services or securities and investments rank among the highest earning financial analysts, with average salaries ranging from $141,140 to $154,850. Those who progress to management or executive roles can earn up to $249,260 annually.
How to Become a Financial Analyst
Financial analysts typically need at least a bachelor’s degree in finance, accounting, economics, or a related discipline to qualify for entry-level roles. Many professionals also pursue graduate study in finance to refine their technical and strategic skills and advance into leadership roles.
Students in St. Thomas University’s online MBA in Finance program complete core coursework in financial management, policy, organizational behavior and global marketing, which strengthens their business knowledge as a foundation for specialized study in investment analysis, global investment and risk strategy, financial markets and international accounting. Internships and further professional experience enable graduates to apply MBA knowledge in practical settings and hone their decision-making skills.
Professional credentials help financial analysts deepen their expertise and demonstrate advanced qualifications to employers. Many analysts pursue certifications to move into specialized roles. The Chartered Financial Analyst (CFA) credential, for instance, is globally recognized and certifies competence in investment tools, asset valuation, portfolio management and wealth planning. Earning a state-issued Certified Public Accountant (CPA) license demonstrates required competencies for accounting and financial management positions, qualifying professionals to oversee financial statements, prepare tax returns and perform corporate audits.
Become a Financial Analyst With an MBA in Finance at STU
With increasing global demand for experts who can interpret complex financial data, careers in financial analysis offer strong earning potential and numerous professional opportunities with a flexible progression. With business foundations and specialized financial skills gained from an MBA in Finance, graduates are prepared to succeed and pursue leadership roles in a dynamic, high-reward field.
STU’s online MBA in Finance program allows professionals to advance their studies and careers at the same time, with asynchronous coursework, flexible start dates and expert faculty support. Explore more program details, and start your application for the Chartered Financial Analyst today to take the next step in your career.
