TCS Financial Analyst Interview Questions and Answers

The process refers to the systematic steps taken to analyze financial data for informed decision-making.

• Data Collection: Gather financial statements, market data, and economic indicators.

• Data Analysis: Use tools like Excel or financial software to analyze trends and ratios.

• Forecasting: Project future financial performance based on historical data and market conditions.

• Reporting: Prepare reports and presentations t...read more

Depreciation is the allocation of the cost of a tangible asset over its useful life.

• Depreciation is a non-cash expense that reduces the value of an asset over time.

• It reflects the wear and tear, obsolescence, or decrease in value of the asset.

• Common methods of calculating depreciation include straight-line, double declining balance, and units of production.

• Example: A company purchases a machine for $10,000 with a ...read more

Depreciation is the systematic allocation of the cost of an asset over its useful life.

• Depreciation is used to account for the wear and tear, obsolescence, or decrease in value of an asset over time.

• It helps in matching the cost of the asset with the revenue it generates during its useful life.

• Depreciation is important for financial reporting and tax purposes.

• There are various methods of calculating depreciation, ...read more

Equity ratios are used to evaluate a company's financial health and performance by measuring its equity relative to other financial metrics.

• The formula for equity ratio is Total Equity / Total Assets.

• Equity ratios help investors and analysts assess a company's leverage and risk.

• For example, if a company has total equity of $500,000 and total assets of $1,000,000, the equity ratio would be 0.5 or 50%.

Gross ratio is a financial ratio that measures the proportion of a company's revenue that is used to cover its operating expenses.

• Gross ratio is calculated by dividing the cost of goods sold by the total revenue.

• It helps in determining the efficiency of a company's operations.

• A higher gross ratio indicates that a company is able to generate more revenue from its operations.

• Debenture is a type of long-term debt ins...read more

Depreciation is the decrease in value of tangible assets over time, while amortization is the decrease in value of intangible assets over time. Capital gains are profits made from selling assets at a higher price than their purchase price.

• Depreciation applies to tangible assets like buildings, machinery, and vehicles, while amortization applies to intangible assets like patents, copyrights, and trademarks.

• Deprecia...read more

Market conditions can also be influenced by geopolitical events, technological advancements, and regulatory changes.

• Geopolitical events such as trade wars or political instability can impact market conditions

• Technological advancements like the rise of e-commerce or artificial intelligence can create new opportunities and challenges in the market

• Regulatory changes such as tax reforms or new legislation can affect m...read more