Common mistakes in modeling tests

Hey! From my experience, the biggest mistake in modeling tests isn't always a wrong formula or a poor format—it’s actually a misunderstanding of the case assumptions. That's the most critical error because it shows a fundamental flaw in your commercial judgment and attention to detail.

That said, candidates still commonly make mistakes with formula errors and linking within the model, especially with tricky circular references. Poor formatting also leaves a bad impression as it suggests a lack of discipline. The key is to slow down, read the instructions carefully, and focus on the logical flow of the model before you start punching in numbers.

Modeling tests can trip up even strong candidates. Like you suggested, common mistakes include 

• wrong formulas (e.g. mixing up signs, forgetting to tax-effect interest)
• poor formatting (hardcoding numbers, no cell linking, messy layout)
• misreading assumptions (e.g. applying growth to the wrong base year)
• and missing error checks (e.g. balance sheet doesn’t balance and they miss it)

My tip: stay calm, prioritize structure and clarity, and triple-check your logic. Even if it’s not perfect, a clean, well-thought-out model stands out.

Hey!

The most common mistakes in investment banking modeling tests tend to fall into a few key areas. Errors in formulas, such as referencing the wrong cells or misapplying financial functions, are frequent and can quickly propagate through the model. 

Candidates also often overlook the case assumptions or misinterpret the instructions, which leads to outputs that don’t reflect the scenario correctly. Ensuring you read the case carefully and double-check the logic of your formulas is critical.

Formatting and presentation are another common pitfall. A model that is hard to follow, inconsistently formatted, or lacking clear labels can create a negative impression even if the calculations are correct. 

Clear structure, consistent formatting, and proper documentation of assumptions not only make your work easier to review but also demonstrate professionalism and attention to detail. Balancing accuracy, clarity, and adherence to instructions is the key to avoiding the most common mistakes.