Eaton Financial Analyst Interview Questions and Answers

Common financial ratios include profitability ratios, liquidity ratios, leverage ratios, and efficiency ratios.

• Profitability ratios: Return on assets (ROA), return on equity (ROE), gross margin ratio

• Liquidity ratios: Current ratio, quick ratio

• Leverage ratios: Debt to equity ratio, interest coverage ratio

• Efficiency ratios: Inventory turnover ratio, accounts receivable turnover ratio

Effective tax rate is the percentage of income that an individual or company pays in taxes after accounting for deductions and credits.

• Effective tax rate takes into account all taxes paid, including federal, state, and local taxes.

• It is calculated by dividing total tax expense by taxable income.

• For example, if a company has a total tax expense of $10,000 and taxable income of $100,000, the effective tax rate would be 1...read more

Accrual expenses are costs that have been incurred but not yet paid for or recorded in the financial statements.

• Accrual expenses are recognized when they are incurred, not when they are paid.

• They are recorded as liabilities on the balance sheet until they are paid.

• Examples include accrued salaries, interest, and taxes.

• Accrual expenses help provide a more accurate representation of a company's financial position.

Notice period is the amount of time an employee must give before leaving a job.

• Notice period is typically stated in the employment contract.

• It can vary from company to company and can range from 1 month to 3 months.

• During the notice period, the employee is expected to work as usual and hand over responsibilities.

• Some companies may allow employees to buy out their notice period by paying a fee.

• Notice period is important...read more

Disclosing current salary and willingness to relocate are common questions in job interviews.

• It is important to be honest about your current salary to avoid any discrepancies later on.

• Express your willingness to relocate if necessary, but also discuss any potential concerns or conditions.

• Consider the benefits of relocating to the base location, such as career growth opportunities or cost of living.

• Provide examples of s...read more