What Does a Financial Analyst Do?
Leaders who approve budgets, prices and big projects need numbers they can act on. As a financial analyst you'll build forecasts, compare results with the plan and write up the case for or against major spending. This might involve capital projects, pricing, staffing models or investment reviews at a company, hospital or university.
Also known as: Principal Financial Analyst, Senior Financial Analyst
Other Job Titles for This Work
Workers in this occupation report titles such as Analyst, Credit Products Officer, Equity Research Analyst, Investment Analyst, Planning Analyst, Portfolio Manager, Real Estate Analyst, Securities Analyst.
Financial Analyst Duties and Responsibilities
The primary responsibilities of a financial analyst include:
- Build and update financial models that link revenue, expenses, cash flow and the balance sheet.
- Compare monthly results with budget and forecast, and explain the main variances in plain terms.
- Prepare business cases for new programs, equipment or facilities, including payback and net present value.
- Analyze pricing, volume and cost data to find where margins are slipping.
- Create dashboards in Power BI, Tableau or Excel for department heads and executives.
- Pull data from the ERP and data warehouse using SQL or built-in report tools.
- Run scenarios on interest rates, enrollment or sales volume for the annual plan.
- Present findings to finance leadership and answer follow-up questions on assumptions.
- Review capital requests and track approved projects against their original budgets.
- Mentor junior analysts at senior and principal levels and check their models for errors.
Required Skills and Qualifications
To succeed as a financial analyst, you will need the following skills and qualifications:
- Advanced Excel modeling
- SQL and a BI tool such as Power BI or Tableau
- Corporate finance basics: NPV, IRR and cash flow
- Enough accounting to read and tie out financial statements
- CFA charter, useful mainly on investment-focused teams
- Clear slides and short memos
- Curiosity about why the numbers moved
- Bachelor's degree in finance, accounting or economics
Education and Training
Entry is open to graduates in finance, accounting, economics and even engineering, as employers are interested in candidates who can model numbers and explain them. A bachelor's degree is the typical entry level, according to BLS. Most learn the business side on the job. Senior and principal analysts often hold an MBA or the CFA charter.
Salary and Job Outlook
Typical pay: $79,290 - $133,340 per year, with a median of $102,740.
The range covers the middle half of earners nationwide. Source: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025, Financial and Investment Analysts.
According to BLS, employment of financial and investment analysts is projected to grow about 7 percent from 2025 to 2035, with roughly 24,700 openings a year. That group includes investment analysts at banks and funds as well as the planning analysts who work inside companies and universities. BLS put the group's median pay at about $103,000 in May 2025. Analysts who pair modeling with clear writing are more likely to move up to senior and principal titles.
Outlook source: U.S. Bureau of Labor Statistics, Employment Projections, 2025 to 2035, Financial and investment analysts.
Financial Analyst Pay Range
| Earners | Annual pay |
|---|---|
| Bottom 10% earn less than | $63,720 |
| Bottom 25% earn less than | $79,290 |
| Median (half earn more, half less) | $102,740 |
| Top 25% earn more than | $133,340 |
| Top 10% earn more than | $180,860 |
Highest-Paying States for Financial Analysts
The states with the highest median pay for this occupation are Wyoming ($187,090), New York ($127,930), Oregon ($120,590), Massachusetts ($111,040), Connecticut ($109,500). Pay is lowest in North Dakota ($78,170), Louisiana ($75,680), West Virginia ($69,030).
Median pay in all 51 states with BLS data
| State | Median annual pay |
|---|---|
| Alabama | $91,290 |
| Alaska | $102,240 |
| Arizona | $93,540 |
| Arkansas | $81,110 |
| California | $109,110 |
| Colorado | $103,850 |
| Connecticut | $109,500 |
| Delaware | $101,800 |
| District of Columbia | $105,780 |
| Florida | $94,490 |
| Georgia | $99,420 |
| Hawaii | $94,640 |
| Idaho | $100,830 |
| Illinois | $101,180 |
| Indiana | $81,760 |
| Iowa | $92,370 |
| Kansas | $84,860 |
| Kentucky | $81,660 |
| Louisiana | $75,680 |
| Maine | $88,320 |
| Maryland | $100,370 |
| Massachusetts | $111,040 |
| Michigan | $95,420 |
| Minnesota | $102,990 |
| Mississippi | $79,580 |
| Missouri | $98,420 |
| Montana | $99,190 |
| Nebraska | $85,320 |
| Nevada | $83,430 |
| New Hampshire | $82,520 |
| New Jersey | $108,610 |
| New Mexico | $87,630 |
| New York | $127,930 |
| North Carolina | $102,390 |
| North Dakota | $78,170 |
| Ohio | $94,280 |
| Oklahoma | $79,640 |
| Oregon | $120,590 |
| Pennsylvania | $84,460 |
| Rhode Island | $100,550 |
| South Carolina | $93,670 |
| South Dakota | $99,150 |
| Tennessee | $92,990 |
| Texas | $99,150 |
| Utah | $91,370 |
| Vermont | $99,090 |
| Virginia | $105,490 |
| Washington | $107,210 |
| West Virginia | $69,030 |
| Wisconsin | $95,570 |
| Wyoming | $187,090 |
Tools and Software Financial Analysts Use
Tools and equipment
Software
Is This Job a Good Fit for You?
People who do well in this job tend to enjoy organized work with data, records and clear procedures as well as leading, persuading and making business decisions.
Preparation: O*NET places this occupation in Job Zone 4 of 5, which means considerable preparation.
Related Careers
These jobs use similar skills, according to O*NET's related-occupation data:
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Sources
- U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025.
- U.S. Bureau of Labor Statistics, Employment Projections, 2025 to 2035.
- O*NET 30.1 Database, occupation 13-2051.00 (Financial and Investment Analysts). View on O*NET OnLine.
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