Basic Tips and Formulas for Financial Question

Hello Leonie,

Don't worry about that, I am an industrial engineer and I hadn't any business experience before my first interview as candidate.

There are only few formulas that you should remember for the case interviews and you can easily find a list online. The most important among them are the net present value and the different methods to evaluate a company.

Best,
Luca

Hi Leonie,

first of all practice-practice-practice.

for formulas please check:

https://www.preplounge.com/en/bootcamp.php/business-concept-library/common-terms-of-business/net-present-value-npv

Good luck,

André

Hi Leonie, I recommend this article to fix the theory: https://www.preplounge.com/en/bootcamp.php/business-concept-library/common-terms-of-business/net-present-value-npv

Best,
Antonello

Practice in cases ;). In particular, read cases/examples and ask for cases that have the following:

ROI

NPV

Breakeven

Margin

Markup

Hello!

As an engenieer, what they are going to demand in the interview is agility with numbers and good "feeling of the big numbers" (e.g., not slip a zero and saying 100 when it´s 1,000, etc.)

No formulas needed at this stage.

Hope it helps!

Cheers,

Clara

Hi,

I would recommend learning the basic accounting before you start the job, but you will not need that for the interview preparation. Also, the case is a very simplified business situation and the accounting concepts are very often neglected. Here is a list of things you will need to know (and you can google them one by one since it is really short):

• Profitability calculations (Operating profit, net profit, cost structure, etc)
• Profit / breakeven formula
• Interest rates calculations
• Compound margin
• NPV using the Rule of 72, Perpetuity
• CAGR using the Rule of 72

Best!