Learn how to solve a finance case study and make a recommendation – the type frequently given in technical finance interviews. We build a financial model to analyze key metrics. Free template included!
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One of the quickest and most common ways to evaluate candidates for analyst roles is to give them a finance case study during an interview. Case studies force us to both crunch the numbers quantitatively to demonstrate our knowledge but also think about the big picture and make recommendations – they are a lot of fun!
For these reasons, they are common in technical finance interviews, university projects, MBA programs, etc.
In this video, I help you solve a finance interview case study for a software platform that is considering a revenue share partnership with another company – this is the type of case study would be common at a FAANG or big tech company.
All case studies start the same way – they present you with a set of facts during some pivotal moment at a company where they are trying to decide whether they want to do some new thing (be it internally, or externally).
Regardless of the specifics – all case studies in finance are effectively asking you to do the same thing – build a simple income statement, differentiate COGS vs. OPEX expenses, calculate the depreciation for a CAPEX investment, and evaluate cash vs. accrual accounting payback period.
At the end, you are expected to synthesize your analysis into an open-ended recommendation about what the company should do.
Now that you understand the basic format of finance case studies, let’s walk through this example where I help you develop a framework of ideas to analyze situations with.
SECTIONS:
1:04 finance case study model setup (all case studies are basically asking the same info)
3:55 building the income statement & analyzing margins
10:50 calculating depreciation schedule for CAPEX
16:15 cash flow analysis & payback period vs. p&l
18:12 key quantitative metrics for making a case study recommendation
21:10 key qualitative metrics for making a case study recommendation
24:36 my finance case study recommendation
By the end of this video, you will understand how to approach finance case studies, crunch the numbers, and make recommendations in your future interviews – I guarantee it!
If you have questions – please leave a comment below and I’ll try to help. Cheers!
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Finance Case Study Example | Finance Interview Technical Questions
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Finance Case Study Example | Finance Interview Technical Questions
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You can see a lot of useful information here: see more here
You can see a lot of useful information here: see more here
43 comments
Thanks for watching! To keep learning, check out my entire finance interview prep series ► http://bit.ly/fin_intervw_prep
This isn't a "model" its a table…
Really nice and useful video. Many thanks to the author!!! Greetings from Ukraine 🇺🇦
I been have been looking for a business case analysis example
Very nice and easy to understand video ! Keep going and congrats from France 🇫🇷
Thanks so much Eric, for these great exemples. Where can I find the solution to the Thumbs up case study please?
Hi,
I am able to download the excel file but is not opening,
Can you please look into it?
Thanks
Why operating income over gross profit to get ebit margin? I think it is operating income over revenues.
interview tomorrow haha I will be letting you know how the case study goes. I really do appreciate you for this
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Thanks Eric for this video. Really really helpful. Good resource for any finance person wanting a good refresher.
this is great thanks for doing and sharing Eric!
Finally found someone who eplains really well, and catches ur attention!! Thank youuu, im still a student, I want to smash my interviews like this
Thank you so much. The explanation is so easy to understand.
So helpful! Thank you!!
Thank-you it's really helpful for me ✨☺️
I love this video! Your pace, thought process and thoroughness is great!
Amazing video, very insightful.
Thank you so much for all this shared information, it's really helpful!! I have two case studies coming up for Coca Cola, what else do you think would be interesting to investigate in this type of exercises?
Insert row: shift + space to select row, Ctrl + + to insert row.
Thank you! So good,…
Love u bro
Very good
Not sure if I have it correctly but if you calculate IRR using the Excel formula, the IRR is only 6%, which I would say is pretty low. WACC can easily go up 6%, which brings NPV to 0. Will this be a valid point to veto the project?
Also, curious about how to calculate ROI for such projects. Is it important in terms of analyzing?
Hey Eric, loved the video content. please do make more finance case study videos! lots of respect from INDIA.
Great Video Eric
I have a finance case study interview next Monday and was frustrated, since I graduated last year and haven't looked at accounting principles for a year. This video was helpful enough to bring my dead brain cells back alive! Thanks alot man
Super helpful! Thanks so much.
Just a quick FYI pretty sure you miscalculated your EBIT % @13;46 you divided by GP instead of revenue 😉
Hi thanks for the effort but you have missed the trick here, if you want to evaluate any project you need to start with project's IRR & NPV. Just a humble suggestion 😌
Thank you so much for this video, especially for also taking so much time to discuss the thought process on the recommendation, this is helping me remember to keep the bigger picture in mind and I think this so helpful as I am preparing to do case studies for recruiting processes!
You dropped this video just in time. I have a case study finance interview coming up and I'm sooo rusty with my financial modeling haha
Thank you so much Eric!
Thanks a lot Eric
100% value….appreciate it Eric!
Great content. Thank you Eric.
Love that Eric brings the casual vibes to finance! Hawaiian shirts 7 days a week baybee!
Amazing to see how fast you can navigate Excel with those keyboard shortcuts. I have to start using these more! Thanks for the video Eric!
Love this new video, Eric! So important to know how to apply the fundamental financial statement concepts you teach in your other videos to case study scenarios like this. Also love how broad this case study example is! Super helpful
Thanks Eric, you have a really nice contents
Very useful, thank you
Good example of finance cash study. thanks eric
Love this, great stuff as always. Thanks Eric!
Excelente Eric, love this video, its helps to understand better the situation.