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When to use Absolute vs % Comparisons?

Say if a question has a table from the past 3 years of Rev, OPEX and FC, what should I do? 

 

Should I create a row for gross margin then calculate the % change?

A secondary concern I have is sometime for interviewee led cases, if they just share a table I feel like there could be 100 different computations I can do, and I'm not sure of which is the right one. For context, I am an advanced caser with 50+ cases done, but this is suddenly a concern for me

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Top answer
Joel
Coach
on Jul 05, 2025
Buy 1 get 1 free (July only) | Kearney | Ex-RB | Involved in recruiting | Passed 10/10 interviews | 250+ interviews

Hello, 

I would say the most important tip of all is keep the goal of the case in mind, is this a cost/revenue specific issue, or a broader profitability problem? 

  • If it is a component-specific problem (i.e., cost or revenue), then just focus on this component and analyze its historical trend.
  • If it is a profitability-wide problem, it is still helpful to analyze each component separately, but if you have the data, calculate profits or any profitability metric (i.e., margin) and analyze it.  

To your point about doing endless computations, you have to focus on what has the most impact on the core of the problem and prioritize it, it's not about doing everything, but about doing the right things! 

One last tip, working with % change is usually more insightful than absolute values as it can help you understand the magnitude of change and makes it easier to compare trends across metrics.  

Bottom-line is: Don't overthink, keep the goal of the case in mind, prioritize and focus on what matters and use % of change when you can. 

Hope this helps, 

Please feel free to reach out if you have any follow-up or if you want us to discuss a specific example!

Mariana
Coach
on Jul 05, 2025
xMckinsey | Consulting and Tech | 1.5h session | +200 sessions | Free 20-min introductory call

Hi,

That’s a very specific question with a specific problem that doesn’t bring all of the context, so it’s hard to give an objective response.

In general, I would advise you to always look into %es when your talking about data MoM or YoY, as the absolute values can’t bring you any insight.

But more than that, in order for you to analyze properly an exhibit and don’t feel overwhelmed, always refer back to the case prompt, what you are trying to solve and what is the success metric to be optimized . If it is a profitability case, you’ll likely look to the table searching for insights related to revenue/costs; if it’s an M&A, you may be interested in synergies, and so on.

Happy to work with you in different math / exhibits drills explaining the logic behind them if that is a gap you would like to fill.

Best,

Mari

Sarah
Coach
on Jul 05, 2025
Ex-McKinsey EM in London, foreign student with no prior consulting internship experience

In this scenario, the insight is in change in profit margin (profit / rev)

Simple absolute is never the right answer, because absolute increases in rev OR cost are rarely insightful. Always look at margin changes.

I would suggest practicing exhibits and being intentional about getting level 3 insights. We can schedule a coaching call to discuss further if helpful.

on Jul 09, 2025
#1 Rated McKinsey Coach | Top MBB Coach | Verifiable success rates
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