Top 5 Financial Analyst Interview Questions & Answers (Easy to Hard)

In this video, we'll walk you through the common financial analyst interview questions that we have encountered while interviewing for financial analyst roles at Tesla, Amazon, Goldman Sachs, and other top companies! This will cover important questions on the time value of money, financial statement fundamentals, financial ratios, valuation methods, and more.

We'll cover these common interview questions:
1. $10,000 today or $10,000 in the future?
2. How can a company with positive EBITDA have negative net income?
3. What are some financial ratios you would use to measure the health and risk of a company?
4. What are different methods that you could use to value a company?
5. Should the weighted average cost of capital be higher for a company with a $100M Market Cap or a $100B Market Cap?
6. Bonus: How many cups of coffee does Starbucks sell in the US each day?

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CHAPTERS:
0:00 - Introduction
0:17 - Question 1
1:17 - Question 2
2:29 - Question 3
4:05 - Question 4
5:39 - Question 5
6:29 - Bonus Question

[paulhan]

I'm more impressed with your not blinking skills than your financial skills. Holy Moly.

[md]

Bravo! All these questions were mentioned two months ago during my interview with ADNOC!

[gopalkrusnajena]

Bro im a student of 12th cbse commerce stream (in India) i can answer every question surprisingly 😀😊

[devinmorton]

This was beyond helpful! As a senior graduating in the Fall of this year I am preparing to apply for FT applications in August/September. So this video is giving me a great head start. Thank you again for providing content like this for FREE!

[aaronkohlhoff]

Q3 Answer
Also include debt to equity ratio

[tristanontheway]

please do one of these episodes every month!

[Gbb]

Great video. You’re very smart as well; good thinking process.

[GoldenGod]

Im taking a basic upper-division corporate finance class at my school... I love it. Thinking of switching to a finance degree from Business/Data analytics. The finance class I am in we have covered all these questions so far

[daisyboisy]

For Q5 should the WACC be higher for a 100 million company or a 100 billion company. I see where your answer is coming from but isn't assuming a risk comes from market cap alone lacks depth? Like for example TSLA has a huge market cap but Ford is a less risky company (according to beta at least)? I might be missing something - Love the video!

[filippofontana]

Very nice video, I advice you to use the bottom up method rather than the top-down one when it comes to specific quests like the bonus one:)

[BigDan]

The answer to Q5 is wrong. The WACC for the larger company would be higher. Since it states that all other things remain equal, the cost of debt, cost of equity, tax and the debt of both firms remain the same. Therefore, since it is generally true that debt is cheaper than equity and the more expensive equity now carries a larger weight in the larger company, the WACC would be higher.

[kadful]

Video was absolutely fantastic…however that last calculation included some wild assumptions😂

[jessesantini]

Q5: if we consider the WACC formula then wouldn’t it be fair to conclude it’s possible that these two companies have the same WACC? If everything we say everything else remains the same besides market cap we can assume they both have the same cost of equity and debt and the same relative % split of each

[brandonquach]

An investment analyst interview question I got was: How much would you charge for insurance of shipping the Mona Lisa to New York?

[megapuspitap]

Hi thank you for nice video. 7 years ago I had market sizing question from a consulting company. It was exactly the same questions but the sales in my country. I did the approach you mentioned. However, the interviewer keep questioning me where do you get the population number? Where did you get 75% assumptions? What is the reason behind that 75%? And basically he keep questioning the validity behind the assumptions. So i am wondering how exactly do we need to answer it?

[Bodiedbyjessfitness]

All of those were hard! Revenue Manager here, am I in over my head?!

[melvinholmes]

I’m in a situation where I’m almost done with my degree but because I chose to do one of those pay as you go schools I can’t get my degree till it’s paid but I do get a completion letter. My question to is can I land an entry level position while I’m still paying off my degree?

[hypgnotic]

Q1 is bit misleading for me, as it never asked you to choose 10K or the discount rate it’s asking you just about the discount rate so I would negative discount as it never implied if negative values would be allowed or not.

[arslanthemughals]

Can I still be a financial analyst if I don't want to work on finalizing financial statements, a task typically handled by Big 4 accountants?

[dohyun]

Can u do exel interview for finance analysist