Financial Analyst Interview

Domain Knowledge On Taxation, Derivatives, Accounts Payable, Accounts Receivable Question(s) & Actual Evaluation

* Please note that the following answer(s) are just sample answers from one of our candidates. It doesn't mean that it's the correct or wrong answer.
Please refer to the evaluation for more insight.

Classification: Financial Analyst

Topic(s): Domain Knowledge On Taxation, Derivatives, Accounts Payable, Accounts Receivable

Interview Question:

Can you walk us through your experience with financial modeling? What key components do you usually include?

Candidate's Answer:

Ok so basically I don't have any practical knowledge practical experience about financial modelling but until I just learn about there are two types two methods to calculate the financial modelling like first method is acid valuation method and second one is dcf which is also known as discounted cash flow method so basically acid valuation method or vi have Tu we have to create value or we have to make a valuation of any company with the use of looking at its along the masses and by calculating it by looking at its method which is discount cash flow method in which we have to use two formulas to make a valuation of any company the first one is in TV which is also used to evaluate the difference between the cash in flow of the company of the company and as well as well as it also needs to one formula

AI Evaluation:

Your answer reveals a lack of practical experience with financial modeling, which could be a concern for the interviewers. While you mention two types of valuation methods—asset valuation and discounted cash flow (DCF)—your explanation lacks clarity and depth. It seems like you were trying to convey that DCF is a key component of financial modeling, but the structure and articulation of your thoughts can be improved significantly.

Here’s a breakdown of areas for improvement:

1. Clarity and Structure: Your answer could benefit from a clearer structure. Start with a brief introduction stating your familiarity with financial modeling concepts. Then, explain key models you’ve learned about in a logical flow.

2. Specific Components: Instead of just stating the methods, delve into the components typically included in a financial model, such as revenue projections, expenses, working capital, capital expenditures, and financing assumptions. This shows you understand what goes into financial modeling.

3. Use of Terminology: Ensure that you use the correct terms. For example, “asset valuation” is not a widely recognized method compared to DCF or comparable company analysis. Instead, you could reference enterprise value or equity value methodologies.

4. Express Willingness to Learn: Given your lack of practical experience, express enthusiasm for learning and mention relevant coursework or self-study you have done to bridge this gap.

Overall, your response needs more depth, clarity, and confidence in conveying what financial modeling entails.

Rating: 2/5

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