Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Back to overview

What additional check should we perform to verify if our estimated earnings are realistic?

2
2.8k
16
Be the first to answer!
Nobody has responded to this question yet.
Top answer
edited on Sep 05, 2021
Former BCG | Case author for efellows book | Experience in 6 consultancies (Stern Stewart, Capgemini, KPMG, VW Con., Hor

on Sep 05, 2019

Calculate historical ratios (earnings to sales, gross margin, operating margin, earnings per unit sold ...) and compare them against the forecasted ratios. Ceteris paribus, the forecasted ratios shouldn't devate much from the historical ones. 

3
on Sep 06, 2019
If it is a Market Size case, and the context about "guesstimates" (i think it is). First of all, you need to reconcile your answer (est. earnings) to baseline from which it was derived. Example: what % does estimated earnings take from total earnings? Secondly, - as i understand, you're always expected to provide recommendations how to make your estimation more relevant. I don't understand how it is possible to start calculate historical ratios on the case interview.
Similar Questions
Consulting
Just did the Mckinsey Solve Game (January 2025) - got some questions/insights
on Apr 24, 2025
Global
5
3.2k
Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 8+ years consulting, 8+ years coaching and 7+ years interviewing experience
35
5 Answers
3.2k Views
+2
Consulting
How do I Case Prep while interning at an MBB?
on Dec 09, 2024
Global
5
600+
Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 8+ years consulting, 8+ years coaching and 7+ years interviewing experience
47
5 Answers
600+ Views
+2
Consulting
Full-time prep for Consulting Interviews?
on Jan 27, 2025
Global
5
600+
Top answer by
Thabang
Coach
Ex-McKinsey Consultant | McKinsey Top Coach & Interviewer | Special Offer: Buy 1 Session Get 1 Free (Limited time!)
20
5 Answers
600+ Views
+2
How likely are you to recommend us to a friend or fellow student?
0 = Not likely
10 = Very likely
Thanks for your feedback! Your opinion helps us make PrepLounge even better.