How can I access the question sets?

To access the question sets, you first need to sign up for a free PrepLounge account. With a free membership, you can view a selection of questions and try out the first sets.

Why are question sets important for my preparation?

The question sets bring together the most common topics asked in Investment Banking , Corporate Finance , and Private Equity interviews. This allows you to focus your practice on the areas interviewers test most frequently. They help you strengthen your fundamentals, internalize typical ways of thinking, and become more confident in delivering clear and structured answers.

How do the question sets differ from traditional case studies?

Case studies usually simulate complete business problems, while the question sets focus on highly targeted technical interview questions. They are shorter, more structured, and designed to test your technical knowledge efficiently. This makes them particularly useful for preparing for the technical rounds of finance interviews.

How can I best practice the question sets?

You can start by working through the question sets on your own to get an initial feel for the structure and logic of the questions. Afterwards, it’s best to practice them in a real interview environment with other members, you’ll find new invitations on the Meeting Board every day. If nothing suitable is available, you can use the Candidate Listing or post your own invitation. To take your preparation to the next level, you can also schedule coaching sessions with our experienced coaches who have helped many candidates secure their dream job offer. Our tip: Review the Finance Interview Basics beforehand to build a stronger foundation and deepen your overall understanding.

What is the difference between Beginner, Intermediate, and Advanced?

The difficulty levels help you gauge how deep the questions in each set go. Beginner sets cover foundational topics such as simple definitions or basic calculations, while intermediate and advanced sets focus on more complex concepts, modeling logic, and connections between financial metrics. This allows you to tailor your preparation to your current skill level.

How do I know if I answered a set correctly?

Each question in the set includes a dropdown with the complete solution path or a model answer. This allows you to check whether your reasoning, structure, and explanation align with what interviewers typically expect. However, we recommend not opening the solution too quickly – give yourself time to think and work through the question on your own first.

Are the question sets modeled after real finance interviews?

Yes, the sets are based on the types of technical questions typically asked in Investment Banking, Private Equity, Corporate Finance, and Audit interviews. They cover both theoretical concepts and short mini-cases that closely mirror real interview situations. The goal is to prepare you for the question style, depth, and expectations of actual interviewers.

What does the star rating under each set mean?

The star rating reflects how other users have evaluated the question set – including its quality, difficulty, and overall usefulness. It helps you gauge how challenging or helpful a set is compared to others on the platform. The higher the rating, the more valuable past candidates found it for their interview preparation.

Back to overview

Case by

PrepLounge

Working Capital Forecasting at FreshHarvest AG

More information

Difficulty: Intermediate

Interviewer-led

5.0

< 100 Ratings

Times solved: 400+

Operations strategy Valuation

You’re advising FreshHarvest AG, a fast-growing food distribution company based in Germany. They operate on tight margins, high volumes, and have recently secured several new retail partners. The CFO wants to better understand how working capital decisions and seasonal dynamics impact their free cash flow profile and ultimately their valuation.

Your task is to assess how working capital evolves over the forecast period, how payment term shifts affect cash flow, and how to reflect seasonality in a dynamic forecasting model.

This case will test your analytical skills, cash flow understanding, and judgment around operational finance levers.

Practice makes the difference

Practicing alone helps – with a partner it’s even better. Solve this question set in a realistic mock interview.

1) Working Capital Drivers

The CFO shares this high-level data for Year 1:

Revenue: €400 million
COGS: €280 million
Inventory Days: 50
Receivables Days: 30
Payables Days: 40

How would you calculate the net working capital investment required in Year 1?

Show solution Hide solution

To assess the impact of working capital on cash flow, you need to quantify how much cash is tied up in receivables and inventory and how much is freed up by delaying payments to suppliers (payables).

This is typically done by converting days outstanding into absolute euro values using revenue or COGS as a base.

Let's go through the calculation step by step.

Calculation of Receivables

Receivables = (Receivables Days / 365) × Revenue
= (30 / 365) × €400M ≈ €32.9M

Calculation of Inventory

Inventory = (Inventory Days / 365) × COGS
= (50 / 365) × €280M ≈ €38.4M

Calculation of Payables

Payables = (Payables Days / 365) × COGS
= (40 / 365) × €280M ≈ €30.7M

Calculation of Net Working Capital

Net Working Capital = Receivables + Inventory – Payables
≈ €32.9M + €38.4M – €30.7M = €40.6M

This means the company needs to invest approximately €40.6M in net working capital in Year 1, which represents a cash outfvlow.

If revenue grows by 20% per year and all working capital days remain constant, how will working capital evolve over the forecast period?

Show solution Hide solution

What effect does this have on Free Cash Flow?

Show solution Hide solution

2) Payment Terms & Negotiation Levers

The Head of Procurement says they’re renegotiating supplier terms to improve payables days from 40 to 60 over the next two years. How would this change affect the company’s free cash flow profile in the short term?

Show solution Hide solution

Would the change in payables affect the valuation of the company?

Show solution Hide solution

3) Seasonality & Cash Flow Timing

The business is highly seasonal. 40% of annual sales occur in Q4. Inventory is built up in Q3, often straining cash flow. How would you reflect this seasonality in your monthly or quarterly cash flow model?

Show solution Hide solution

Would you expect working capital to be a net inflow or outflow in Q3 and Q4?

Show solution Hide solution

How would this seasonality affect the company’s need for a credit facility or cash buffer?

Show solution Hide solution

4) Operating vs. Investing Cash Flows

The CFO believes all working capital changes should be excluded from Free Cash Flow to the Firm (FCFF), calling them "short-term timing issues."

Do you agree with the CFO’s view? Why or why not?

Show solution Hide solution

In a transaction or due diligence setting, why is it important to analyze changes in working capital separately from EBITDA?

Show solution Hide solution

Practice This Question Set With Peers Who Are Currently Looking for Interview Partners.

All Meeting Slots

Do you have questions on this question set?

Ask our community and receive answers and tips directly from our experts.

Related Finance Interview Basics Articles

Compound Annual Growth Rate

Key Figures & Terms

The Compound Annual Growth Rate (CAGR) describes the average annual growth of a metric such as revenue, market size, user base, or investment over several years. It assumes that profits are reinvested and compounded each year, resulting in a steady growth rate over the entire period.Also known as the Annualized Growth Rate or Geometric Average Growth Rate, the CAGR provides a simple way to show how a metric has developed over time without being distorted by short-term fluctuations.

To the article

Asset-based Approach

Valuation Models

The asset-based approach to company valuation is one of the three primary methods used in finance, alongside the income approach and the market approach. While the income approach values a business based on future cash flows and the market approach relies on valuation multiples to compare companies, the asset-based approach looks directly at the balance sheet. It adjusts a company’s assets and liabilities to their current fair market value, with the difference representing the company’s net asset value (NAV).This guide explains how the asset-based approach works, outlines its main variants such as book value, adjusted net asset value, and liquidation value, and shows in which situations it is most relevant. You will also find examples of common finance interview questions on this valuation method, as the asset-based approach frequently appears in interviews and assessments for roles in investment banking and corporate finance.

To the article

Gordon Growth Model (GGM)

Valuation Models

The Gordon Growth Model (GGM) is a simplified version of the Dividend Discount Model (DDM) that estimates the intrinsic value of a stock based on its future dividends. What sets the GGM apart is its core assumption: dividends will grow at a constant rate indefinitely. This makes the model straightforward to apply, as it avoids the complexity of accounting for varying growth stages.Because of this focus on perpetual, steady growth, the GGM is particularly suited for mature companies with stable earnings and predictable dividend policies. While it may not capture the dynamics of high-growth or volatile firms, it remains one of the most widely used tools for valuing dividend-paying stocks in practice.

To the article

PESTEL Analysis

Business Frameworks

Whether it’s new markets, changing regulations, or technological developments, companies must continuously understand and assess their environment to identify risks and opportunities early on. This is exactly where business analysts and consultants come in: they help organizations spot market risks and opportunities at an early stage. To do this, they rely on analytical tools that systematically evaluate both internal factors and external influences. Among the most popular methods, alongside the SWOT analysis and Porter’s Five Forces, is the PESTEL analysis.While SWOT examines both internal and external factors, PESTEL zooms in on the external components. Thus, it offers more insights into the macro-environmental forces that create those opportunities and threats to help in strategic planning and informed decision-making.

To the article

Market Approach

Valuation Models

The market-based approach is one of the three primary methods of business valuation, alongside the income approach and the asset-based approach. Instead of projecting future earnings or adjusting balance sheet values, it determines value by comparing a company to similar businesses (Comparable Company Analysis) or transactions (Precedent Transactions Analysis) in the market. The underlying idea is straightforward: the market prices paid for comparable firms provide a benchmark for what the target company should be worth.This approach typically relies on valuation multiples such as EV/EBITDA, P/E, or EV/Sales, derived from public company data or recent M&A deals. By applying these multiples to the target’s financials, analysts can estimate its market value under real-world conditions. The challenge lies in carefully selecting and interpreting the peer group, since differences in growth, risk, and profitability can significantly affect the outcome.

To the article

Finance Interview Questions – Prepare for Your Finance Interview Like a Pro

Practice with our curated Finance Interview Question Sets and get ready for your upcoming interview in Corporate Finance, Investment Banking, or Private Equity.
Whether you are applying to an investment bank, a Big Four firm, or a corporate finance department, these questions will help you build confidence and master your finance interview skills.

A comprehensive selection of Finance Questions
Our collection covers the key areas of typical finance interviews – from Accounting, Financial Modelling, and Valuation to M&A transactions, Capital Markets, and Corporate Strategy.
The sets vary in difficulty, allowing you to train both fundamental and advanced concepts.
Many of the questions are based on real interview experiences from top firms such as Goldman Sachs, J.P. Morgan, Deloitte and PwC, giving you authentic insights into what to expect.

Practice alone or team up with other candidates, compare your answers, and refine your problem-solving approach.
Get fully prepared for your next Finance Interview with PrepLounge!