Top 25 Financial Analyst Technical Interview Questions & Answers

1. Introduction

Embarking on a career as a financial analyst can be both exciting and demanding, especially when it comes to the technical interview stage. Preparing for a range of financial analyst technical interview questions is crucial in showcasing your expertise and analytical prowess. This article aims to guide you through some of the most common questions you might encounter, equipping you with the insight needed to impress your prospective employers.

2. The Role of a Financial Analyst

A financial analyst plays a pivotal role in a company’s financial planning and analysis, providing insights that directly influence strategic decisions. Their expertise extends to various domains such as financial reporting, valuation techniques, forecasting, and risk management. To excel in this role, candidates must demonstrate a deep understanding of financial concepts and the ability to apply them in practical scenarios. This includes proficiency in financial modeling, an intimate knowledge of accounting principles, and the ability to communicate complex information in an understandable manner. The questions we will cover are designed to probe these competencies, ensuring that a candidate is not only technically sound but also capable of contributing meaningfully to a firm’s financial strategy.

3. Financial Analyst Technical Interview Questions and Answers

Q1. Can you explain the difference between a balance sheet and an income statement? (Financial Reporting)

A balance sheet and an income statement are two fundamental financial statements that serve different purposes in financial reporting.

• A balance sheet provides a snapshot of a company’s financial position at a specific point in time. It reflects the company’s assets, liabilities, and shareholders’ equity. Its equation is Assets = Liabilities + Shareholders’ Equity. Key components include:

  • Assets: Resources owned by the company (e.g., cash, inventory, property, etc.).
  • Liabilities: Obligations the company owes to outsiders (e.g., loans, accounts payable, etc.).
  • Shareholders’ Equity: The residual interest in the assets of the company after deducting liabilities.

• An income statement, also known as a profit and loss statement, shows the company’s financial performance over a specific period. It provides a summary of the company’s revenues, expenses, and profits or losses during that time. Its equation is Net Income = Revenue – Expenses. Key components include:

  • Revenue: The income generated from normal business operations.
  • Expenses: The costs incurred to generate revenues.
  • Net Income: The profit or loss after subtracting expenses from revenue.

In summary, the balance sheet is a static representation of the company’s financial situation at a given moment, while the income statement is a dynamic report that tracks the company’s financial performance over a period.

Q2. How would you value a company using the Discounted Cash Flow method? (Valuation Techniques)

The Discounted Cash Flow (DCF) method is a valuation technique where future cash flows are estimated and discounted back to the present value using a discount rate. Here’s a simplified process:

1. Forecast the Company’s Free Cash Flows: Estimate the company’s future cash flows for a certain period (usually 5-10 years). Free cash flow (FCF) is the cash that a company is able to generate after laying out the money required to maintain or expand its asset base.

2. Determine the Terminal Value: Calculate the terminal value, which is the value of the company’s cash flows beyond the forecast period, using either the perpetuity growth model or the exit multiple method.

3. Discount the Cash Flows: Discount the forecasted cash flows and terminal value to the present value using the company’s weighted average cost of capital (WACC).

4. Arrive at the Enterprise Value: Sum the present values of the forecasted cash flows and the present value of the terminal value to get the enterprise value.

5. Make Adjustments: Adjust for non-operating assets, debts, and minority interests to convert the enterprise value to equity value.

Q3. Describe the process of financial forecasting and the methods you would use. (Forecasting)

The process of financial forecasting involves projecting the future financial performance of a company based on historical data, trends, and external factors. The methods used for forecasting may vary depending on the complexity and needs of the business. Here are some common methods:

• Top-down approach: Starting with a macro perspective and narrowing down to the specifics of the company.
• Bottom-up approach: Starting with the specific details of the company and building up to a comprehensive picture.
• Linear regression analysis: Using statistical methods to predict future values based on historical trends.
• Time-series analysis: Evaluating patterns and trends in historical data over time to predict future performance.

It’s crucial to consider multiple scenarios (base, optimistic, pessimistic) to account for uncertainties.

Q4. How do you assess a company’s financial health? What metrics would you use? (Financial Analysis)

Assessing a company’s financial health involves analyzing various financial metrics and ratios which give insight into different aspects of the company’s financial performance and position. Here are some key metrics:

• Liquidity Ratios: Indicate the company’s ability to pay off its short-term obligations.
  • Current Ratio
  • Quick Ratio
• Profitability Ratios: Reflect the company’s ability to generate profits from its operations.
  • Net Profit Margin
  • Return on Assets (ROA)
  • Return on Equity (ROE)
• Leverage Ratios: Show the amount of debt relative to equity or assets.
  • Debt-to-Equity Ratio
  • Debt-to-Assets Ratio
• Efficiency Ratios: Measure how well the company utilizes its assets.
  • Asset Turnover Ratio
  • Inventory Turnover Ratio

A healthy company generally has solid liquidity, profitability, and efficiency while maintaining a manageable level of leverage.

Q5. Explain the concept of Weighted Average Cost of Capital (WACC) and its importance. (Corporate Finance)

Weighted Average Cost of Capital (WACC) is the average rate of return a company is expected to pay its security holders to finance its assets. WACC is crucial because it represents the minimum return that a company must earn on its existing asset base to satisfy its creditors, owners, and other providers of capital.

Importance:

• Investment Decisions: WACC is used as a hurdle rate for capital budgeting decisions.
• Valuation: It’s essential in DCF valuation for discounting future cash flows.
• Performance Measurement: Helps in assessing the company’s financial performance relative to its cost of capital.

Calculation:
WACC is calculated by multiplying the cost of each capital component by its proportional weight and then summing the results. Here is the formula:

[
WACC = \left( \frac{E}{V} \right) \times Re + \left( \frac{D}{V} \right) \times Rd \times (1 – Tc)
]

Where:

• ( E ) = Market value of the firm’s equity
• ( D ) = Market value of the firm’s debt
• ( V ) = ( E + D ) (Total market value of the firm’s financing)
• ( Re ) = Cost of equity
• ( Rd ) = Cost of debt
• ( Tc ) = Corporate tax rate

Here’s a table example with hypothetical values:

Source of Capital	Market Value	Proportion	Cost (%)	Weighted Cost (%)
Equity	$60,000	60%	8%	4.8%
Debt	$40,000	40%	5%	2%
Total/ WACC	$100,000	100%		6.8%

Q6. What is the difference between IRR and NPV? Which one do you prefer and why? (Investival Appraisal)

Internal Rate of Return (IRR) and Net Present Value (NPV) are both intrinsic to the field of investment appraisal. Here’s a brief comparison:

• IRR is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero. It’s effectively the projected growth rate of an investment.
• NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV discounts the cash flows to the present value to assess the profitability of an investment or project.

Preference:

How to Answer:
When discussing your preference between IRR and NPV, consider highlighting the context in which each metric is most useful and explain your reasoning for preferring one over the other.

Example Answer:
I tend to prefer NPV over IRR for several reasons. NPV provides a dollar amount that is easy to interpret; a positive NPV indicates that an investment is expected to add value to the firm, which aids in decision-making. Also, NPV takes into account the cost of capital, and I find it more reliable when comparing projects of different sizes and durations. IRR, while useful for understanding the break-even cost of capital, can sometimes give multiple values or fail to account for changing cost of capital, leading to potentially misleading results, especially in non-conventional cash flow projects.

Q7. How would you approach building a financial model for a new project? (Financial Modeling)

Building a financial model for a new project involves several key steps:

1. Define the Scope and Purpose: Clearly understand what the financial model is meant to achieve and the decisions it’s supposed to inform.

2. Gather Data: Collect historical data and other relevant information that will form the basis of projections.

3. Set Assumptions: Define the key assumptions that will drive the model’s projections. These should be based on industry standards, management input, and economic conditions.

4. Design the Structure: Lay out the structure of the model with inputs, processing, and outputs sections. Plan for modular design to allow for easy updates and changes.

5. Build the Model: Develop the core financial statements—profit and loss, balance sheet, and cash flow statements—integrating the assumptions into the model.

6. Stress Test and Validate: Test the model under various scenarios and validate the calculations by cross-checking with known benchmarks or historical data.

7. Review and Revise: Have the model reviewed by peers or stakeholders for feedback and make any necessary revisions.

8. Document and Present: Ensure the model is well documented for ease of understanding and use, and prepare to present the findings to stakeholders.

Q8. Can you discuss a time when you identified a significant error in a financial report? How did you handle it? (Attention to Detail)

How to Answer:
Reflect on a past experience where your attention to detail saved the company from making a potentially bad decision or corrected a serious misstatement. Outline your thought process and the steps you took to rectify the situation.

Example Answer:
In my previous role, I discovered a significant error in the quarterly financial report where sales revenue was overstated due to a duplication error in the system. I immediately notified my supervisor and the accounting team. We worked together to trace the source of the duplication, corrected the entries, and implemented additional checks to prevent similar errors in the future. After rectifying the error, we issued an amended report with an explanation for the revision. This instance reinforced the importance of thorough review processes and safeguarding the accuracy of financial information.

Q9. In terms of risk management, how do you determine the risk associated with an investment? (Risk Management)

To determine the risk associated with an investment, I utilize a combination of qualitative and quantitative methods:

• Qualitative Analysis: Assess the management team, business model, industry dynamics, and competitive environment.

• Quantitative Analysis: Employ financial ratios, historical volatility measures, beta (systematic risk), and Value at Risk (VaR). Here’s a simplified example of how you might calculate beta, which reflects the sensitivity of a security’s returns to the market returns:

import numpy as np

# Assume we have arrays of stock and market returns
stock_returns = np.array([0.05, 0.02, -0.01, 0.03, 0.04])
market_returns = np.array([0.04, 0.01, 0.00, 0.02, 0.03])

# Calculate covariance between stock and market
covariance = np.cov(stock_returns, market_returns)[0][1]

# Calculate variance of the market
market_variance = np.var(market_returns)

# Calculate beta
beta = covariance / market_variance
print("Beta of the stock:", beta)

In addition to these methods, I also consider diversification strategies and scenario analysis to understand how the investment might perform under different market conditions.

Q10. Describe the uses of sensitivity analysis in financial models. (Financial Modeling)

Sensitivity analysis is a crucial technique used in financial models to:

• Test the Robustness of a Model: It helps in understanding how sensitive the outcome of the model is to changes in the input variables.
• Identify Key Drivers: It allows analysts to determine which variables have the most impact on the outcome, aiding in focused decision-making.
• Prepare for Uncertainty: It provides insights into how changes in market conditions or assumptions affect the project’s or investment’s viability.
• Support Strategic Planning: It enables decision-makers to plan for various scenarios and understand potential outcomes.

Here is an example table illustrating a simple sensitivity analysis on a project’s NPV based on different growth rates and discount rates:

Growth Rate / Discount Rate	5%	10%	15%
1%	$120M	$110M	$100M
2%	$130M	$115M	$105M
3%	$140M	$120M	$110M

In this table, each cell represents the NPV of a project given a set of growth and discount rates, allowing stakeholders to quickly assess the project’s sensitivity to these key variables.

Q11. What is EBITDA, and why is it important in financial analysis? (Financial Metrics)

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company’s overall financial performance and is used as an alternative to simple earnings or net income in some circumstances. EBITDA focuses on the operational decisions of a business because it looks at profitability from core business operations before the impact of capital structure, taxation, and non-cash depreciation and amortization expenses.

Why is EBITDA important in financial analysis?

• Comparability: It allows for better comparisons between companies by removing the effects of financing and accounting decisions.
• Operational Efficiency: It provides a clearer picture of a company’s operational efficiency by excluding non-operating expenses.
• Investment Appraisal: EBITDA can be used in various valuation ratios, such as Enterprise Value to EBITDA, which is commonly used in valuation comparisons.
• Covenant Compliance: It’s often used in loan covenants where lenders may set EBITDA targets for borrowers to meet.

Q12. How do macroeconomic factors affect a company’s financial performance? (Economic Understanding)

Macroeconomic factors are elements that impact the economy at a broad level and can influence a company’s financial performance in numerous ways. Here are some examples of macroeconomic factors:

• Interest Rates: A rise in interest rates can increase borrowing costs and reduce consumer spending.
• Inflation: High inflation can erode purchasing power and increase operational costs.
• Exchange Rates: Fluctuations in exchange rates can impact the costs of imports and exports.
• Economic Growth: The overall health of the economy can affect consumer and business spending.

Q13. What is the purpose of adjusting entries in accounting? (Accounting Principles)

Adjusting entries are made in accounting at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred. The purpose of adjusting entries is to:

• Ensure Revenue Recognition: Adjust revenues earned during the period but not yet recorded.
• Match Expenses: Match expenses with the revenues they helped to generate during the accounting period.
• Update Asset & Liability Balances: Adjust the balance of assets and liabilities to their correct amounts.

Q14. Can you explain the concept of ‘capital structure’ and its relevance? (Corporate Finance)

Capital structure refers to the mix of debt and equity that a company uses to finance its overall operations and growth. It is relevant because:

• Cost of Capital: The mix of debt and equity affects a company’s weighted average cost of capital (WACC), influencing investment decisions and valuation.
• Financial Risk: High levels of debt may increase financial risk, but can also increase potential returns to equity holders as part of the trade-off.
• Ownership Dilution: Issuing new equity can dilute existing shareholders’ equity, affecting control and earnings per share.

Q15. What steps do you take to ensure the accuracy of your financial analysis? (Accuracy & Detail-Oriented)

Ensuring accuracy in financial analysis is crucial. Here are the steps I take:

1. Data Verification: Double-check the source data for accuracy.
2. Use of Financial Models: Utilize robust financial models with error-checking mechanisms.
3. Cross-Checking: Perform cross-checks with previous reports and industry data.
4. Sensitivity Analysis: Conduct sensitivity analysis to understand how changes in assumptions impact the analysis.
5. Peer Review: Have the work reviewed by colleagues for a fresh perspective and to catch any oversights.

Example Answer:
To ensure accuracy, I always start by verifying the data I’ll be using for my analysis. This involves cross-referencing figures with source documents and financial statements. I employ financial models that I’ve designed with built-in checks to flag any inconsistencies or errors. Moreover, I find it beneficial to cross-check my findings with past analyses and industry standards. I also run a sensitivity analysis to see how changes in variables affect the results. Finally, I have my work reviewed by a peer to catch any potential oversights, as a fresh set of eyes can often spot mistakes that I may have missed.

Q16. How do different types of debt affect a company’s financial statements? (Financial Reporting)

When a company takes on debt, it affects its financial statements in various ways. The key financial statements impacted are the balance sheet, income statement, and cash flow statement.

• Balance Sheet: Debt appears on the balance sheet as a liability. Short-term debt, such as a line of credit, is listed as a current liability, while long-term debt, like bonds or term loans, is listed as a long-term liability. When debt is issued, cash or other assets increase, balancing the increase in liabilities.

• Income Statement: The costs associated with debt, mainly interest expenses, are recorded on the income statement. This reduces the company’s net income, as interest is a deductible expense before taxes.

• Cash Flow Statement: On the cash flow statement, the receipt of a loan is recorded as a cash inflow in the financing section. The repayment of the principal amount of the debt is also recorded in the financing section as a cash outflow. Interest payments, although an expense on the income statement, are recorded as operating cash outflows since they are considered part of the company’s operating activities.

Here is a table summarizing the effects:

Financial Statement	Impact of Debt
Balance Sheet	– Increased assets (cash/other assets)
	– Increased liabilities (short-term/long-term)
Income Statement	– Increased interest expense
	– Decreased net income
Cash Flow Statement	– Cash inflow from financing (loan receipt)
	– Cash outflow from financing (loan repayment)
	– Cash outflow from operations (interest)

Q17. Describe the most challenging financial model you have created. What made it challenging? (Financial Modeling)

How to Answer:
When answering this question, focus on the complexity of the project, the skills you applied, the creative solutions you found, and the outcome. Be sure to highlight your problem-solving abilities and attention to detail.

Example Answer:
The most challenging financial model I created was a merger and acquisition (M&A) model for a large-scale consolidation within the telecommunications industry. This model was challenging due to several factors:

• Complex Assumptions: The deal involved multiple companies, each with different growth rates, cost structures, and synergies.
• Regulatory Constraints: Considering the industry’s regulatory environment was crucial and added layers of complexity.
• Data Integration: Combining historical data and projecting the combined entity’s financials required careful alignment of accounting policies.
• Sensitivity Analysis: I had to build in extensive sensitivity analysis to account for volatile market conditions and regulatory changes.

I overcame these challenges through meticulous research, verifying assumptions with industry experts, and iterative testing of the model with various scenarios. The final model provided a robust tool for the client to evaluate the financial and strategic implications of the merger.

Q18. What is a credit default swap and how does it work? (Derivatives & Financial Instruments)

A credit default swap (CDS) is a financial derivative that allows an investor to "swap" or offset their credit risk with that of another investor. Essentially, it’s a form of insurance against the default of a borrower.

Here’s how it works:

• Protection Buyer: The investor who wants to hedge against the possibility of a default on a credit instrument such as a bond or loan.
• Protection Seller: The investor who agrees to insure the risk of default for a fee, known as the CDS premium.
• Reference Entity: The borrower whose default risk is being swapped, usually a corporation or government entity.

If the reference entity does not default, the protection seller keeps receiving the premiums. If a default occurs, the protection seller must compensate the protection buyer, usually by paying the face value of the credit instrument minus the recovery rate.

Here’s a simple example of a credit default swap:

| Party            | Role                                | Action                                                           |
|------------------|-------------------------------------|------------------------------------------------------------------|
| Investor A       | Protection Buyer                    | Pays periodic premiums to Investor B                             |
| Investor B       | Protection Seller                   | Receives premiums; pays out if default occurs                    |
| Company XYZ      | Reference Entity                    | Not directly involved in the CDS contract                        |

Q19. How do you stay current with changes in financial regulations? (Regulatory Compliance)

How to Answer:
Discuss the methods you use to ensure you are up-to-date with the latest regulatory changes. Emphasize active learning and engagement with the financial community.

Example Answer:
To stay current with changes in financial regulations, I use a multi-pronged approach:

• Professional Membership: Being a member of professional bodies like the CFA Institute, which provides regular updates and continuing education on regulatory changes.
• News and Publications: Regularly reading financial news, journals, and official publications from regulatory bodies such as the SEC or FCA.
• Seminars and Webinars: Attending industry seminars and webinars that focus on the latest regulatory developments.
• Networking: Engaging with a network of professionals in the field to discuss changes and share insights.
• Compliance Training: Participating in compliance training sessions provided by my employer to understand how regulatory changes affect our business and practices.

Q20. Could you explain how to conduct a break-even analysis? (Cost Analysis)

To conduct a break-even analysis, you need to calculate the point at which your total revenues equal your total costs, which indicates no profit or loss. This analysis helps in understanding the minimum performance your business must achieve to avoid losing money.

Here are the steps to perform a break-even analysis:

1. Identify fixed costs: These are costs that do not change regardless of the number of goods or services produced, such as rent, salaries, and insurance.
2. Determine variable costs per unit: These costs vary with the level of production, like materials and labor directly associated with product creation.
3. Calculate the contribution margin per unit: This is the selling price per unit minus the variable cost per unit.
4. Compute the break-even point in units: Divide the total fixed costs by the contribution margin per unit. This gives the number of units you need to sell to break even.

Using the formula:

Break-Even Point (units) = Total Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)

Example:

• Fixed Costs: $10,000 per month
• Selling Price per Unit: $50
• Variable Cost per Unit: $30

Break-Even Point (units) = $10,000 / ($50 - $30) = 500 units

To break even, you would need to sell 500 units per month.

Q21. In what ways do you utilize Excel for complex financial analyses? (Technical Skills)

Answer:

Excel is an incredibly versatile tool for financial analysts, allowing them to manage, analyze, and present financial data effectively. Here are some ways Excel is utilized for complex financial analyses:

• Data Organization: Excel’s spreadsheet format allows for efficient organization of large datasets, which can be sorted, filtered, and structured to facilitate analysis.
• Financial Modeling: Excel is used to build financial models that forecast future financial performance based on various assumptions and scenarios.
• Pivot Tables and Pivot Charts: These are powerful Excel features used to summarize, analyze, explore, and present summary data.
• Advanced Formulas: Complex calculations are handled using Excel functions like VLOOKUP, INDEX(MATCH), and array formulas.
• Data Validation and Conditional Formatting: These features help ensure data integrity and highlight key information or trends.
• Macros and VBA: For repetitive and complex tasks, macros can be recorded or custom scripts can be written using Visual Basic for Applications (VBA) to automate workflows.

Q22. Describe an experience where you used data analytics to inform financial decisions. (Data Analysis)

How to Answer:
You should provide a concrete example that showcases your analytical skills and how you used data to drive a financial decision. Emphasize the methodology, tools used, and the impact of your analysis.

Example Answer:
In my previous role, I was tasked with identifying cost-saving opportunities within the company’s supply chain. I used data analytics to perform a deep dive into the purchasing patterns and supplier performance. By analyzing historical data and developing a predictive model, I identified that consolidating orders and renegotiating contracts with high-performing suppliers could save up to 15% on procurement costs. These insights were presented to management and implemented, resulting in significant annual savings.

Q23. How would you explain the concept of ‘operating leverage’ to someone without a financial background? (Corporate Finance)

Answer:

Operating leverage is a measure of how sensitive a company’s profits are to changes in sales volume. To explain this to someone without a financial background, I would use a simple analogy:

Think of a seesaw, where profits are on one side and sales are on the other. Operating leverage is like the position where you sit on the seesaw. If you sit closer to the pivot point (fixed costs), a small change in sales (the other person jumping on the seesaw) leads to a big move in profits. In business, higher operating leverage means that a small increase in sales can lead to a larger increase in profits because fixed costs (like rent or salaries) do not change much with sales volume.

Q24. What is Monte Carlo simulation and how is it useful in finance? (Quantitative Analysis)

Answer:

Monte Carlo simulation is a statistical technique that allows us to understand the impact of risk and uncertainty in financial forecasting models. It involves running a model many times with different random inputs to calculate a range of possible outcomes. Here’s why it is useful in finance:

• Risk Analysis: It helps in assessing the risk associated with an investment or project by simulating a range of possible outcomes.
• Portfolio Optimization: Used to understand the probable outcomes of portfolio returns and the risk of different asset allocations.
• Option Pricing: Monte Carlo is used to price complex financial instruments, like options, by simulating various price paths.
• Project Budgeting: It can estimate the probability of staying within a budget, considering cost uncertainties.

Q25. Can you discuss a time when you had to present complex financial information to a non-financial audience? How did you ensure their understanding? (Communication Skills)

How to Answer:
Discuss a situation where you presented financial data to a lay audience, focusing on the techniques you used to simplify the information and ensure comprehension.

Example Answer:
At my previous job, I had to present the annual budget to a group of department heads who were not familiar with financial jargon. To ensure their understanding, I:

• Visualized Data: Created charts and graphs to represent trends and comparisons visually rather than relying on spreadsheets alone.
• Simplified Terminology: Used everyday language instead of technical financial terms.
• Interactive Presentation: Included interactive elements, like Q&A sessions, to engage the audience and clarify doubts in real time.
• Follow-Up Materials: Provided summarized handouts with key points and further explanations for reference after the presentation.

4. Tips for Preparation

To excel in a financial analyst technical interview, it’s crucial to blend robust technical knowledge with sharp analytical skills. Begin by revisiting the core financial concepts and the practical application of tools like Excel and financial modeling software. Ensure that you’re current with industry standards and recent changes in financial reporting and regulations.

Hone your soft skills, too, because communication and problem-solving are as vital as your technical prowess. Review leadership and collaboration scenarios that demonstrate your ability to work in a team and lead projects. Consider mock interviews to practice articulating complex financial terms and concepts clearly and concisely.

5. During & After the Interview

During the interview, present yourself as confident, but not overconfident. Be clear and concise in your explanations, showcasing your analytical and problem-solving abilities. Interviewers often look for candidates who can demonstrate a balance between technical expertise and the soft skills necessary for stakeholder engagement.

Avoid common pitfalls like being overly technical with explanations or failing to admit when you don’t know an answer—honesty, coupled with a willingness to learn, is highly appreciated. Prepare thoughtful questions for the interviewer about team dynamics, success metrics, or the company’s financial strategies, showing your genuine interest in the role and company.

After the interview, promptly send a personalized thank-you email to express your appreciation for the opportunity and reiterate your interest. Keep it professional and concise. Typically, companies may take anywhere from a few days to weeks to provide feedback. During this time, continue to reflect on your interview performance, identify areas for improvement, and apply those insights to future opportunities.