Are financial modeling skills tested in finance interviews? How?

Modeling is an absolute game-changer. Without solid modeling skills, most candidates don’t make it far. Here’s why:

1. Modeling Tests: Expect 1-2 hour Excel challenges where you’ll need to build LBOs and 3-statement models under tight deadlines.
2. Case Studies: Many investing roles throw 24-hour or multi-day case studies at you, requiring deep modeling expertise alongside qualitative analysis.
3. Paper LBOs: Be ready to showcase your mental math and financial knowledge by walking through an LBO on paper.
4. Technical Interviews: Even outside of formal modeling tests, a strong foundation in financial modeling will give you a huge edge.

The good news? You don’t have to figure this out alone. Let’s set up a free intro session and map out a plan to help you crush your modeling interviews!

I can't speak for every firm, but I recently interviewed for an internship at JPMorgan and they did test my financial modeling skills. They didn’t make me build a full model from scratch, but they wanted to see if I could walk through the basics. They asked me to talk through how a simple cash flow model works and explain what would happen if certain numbers changed, like revenue or expenses. Honestly, they didn’t expect perfection but wanted to see that I understood the fundamentals and could think logically about how the different pieces connect. Getting some practice beforehand helped a lot!

Based on my experience, financial modeling skills do come up, but not every interview tests them in-depth. Some companies just ask general questions about your experience with financial models or how comfortable you are with Excel. Occasionally, they’ll describe a hypothetical scenario and ask how you’d approach building a model for it, without needing to actually build it on the spot. Other times, they’ll ask you to explain the key steps you’d take in forecasting or valuing a company. So, it’s good to be prepared for both hands-on and more theoretical questions.

Hey there,

Yes, financial modeling skills are often tested in finance interviews, especially for roles in investment banking, private equity, equity research, and corporate finance. The way they test these skills can vary quite a bit. Some firms might ask you to build a simple three-statement financial model from scratch, while others could present you with a partially built model that you need to complete or adjust. Sometimes, they’ll describe a business scenario and ask you to project financial outcomes based on limited data.

Interviewers are usually looking to see how well you understand financial concepts, your ability to handle Excel efficiently, and how you structure your model logically. It’s also common for them to ask you to explain the assumptions you’ve made since that’s a big part of effective modeling. If you're preparing, practicing common scenarios like building revenue models, DCF valuations, or LBO models is a solid move.

Good luck with your interviews! If you have any other questions, feel free to ask.

Simon

Hey there, 

As mentioned by others, financial modeling skills are definitely tested in finance interviews, especially for roles in investment banking, private equity, and corporate finance. While the level of depth can vary, interviewers often look for your understanding of core financial concepts and how well you can use Excel to build or walk through models. You might not always be asked to build a full model from scratch, but you should be prepared for both theoretical and practical questions. 

I hope that helps and let me know if any support in the preparation is needed.