It is important to go through a round of possible questioning and understand the relevant answers to it before you appear for the position of Financial Modeler.

Now, the interview for Financial Modelling course will be based on the job position, however, we have set the top financial modeling questions to make you prepare well for the required position.

An experienced financial modeling expert will conduct the interview basis the following –

  • Sample of a work done by interviewee and
  • Question-based on the sample work

Questions based on the sample work may vary however we have listed, the general questions which can be asked for the position of financial modeling expert.

Q1: What is your understanding of Financial Modeling and how is it useful?

(Now in this you need to explain what the need for financial modeling is and how it helps in forecasting a company’s financial statements to make prudent financial decisions)

Ans1: Financial Model is the Excel-based tool developed to make a qualitative analysis of a company’s expenses and earnings. In other words, the financial modeling represents all the aspects or major aspects of a company’s operations in numbers and analysis made basis historical performance, and future planning.

In financial modeling, different hypothesis situations are created to ascertain the future of the industry orb an organization. For example – In the Investment Banking sector and Financial Research, Financial modeling implies forecasting the financial statements of a company like cash flows, balance sheets, and Income statements basis on which the company’s valuation is evaluated.

Why Financial Modelling is useful?

Financial modeling can be used to determine the impact of future projects and decisions, and also to compare the business with competitors or estimating the valuation of a company. They are also used in strategic plans out for various situations, to calculate the cost of upcoming projects, set budgets, and allocating the resources of the company prudently.

For this, you can give supporting examples of financials models you have prepared and how it has helped in making considerate financial decisions in a company. However make sure, you pick the model you are confident about and able to handle all questions related to it,  

Q2: How do you build a financial model?

(Here, it is important to talk about the common types of financial model and a quick brief on how it is prepared. You do not have to go into details unless asked. Keep it short, simple and robust.)

Ans2: There are 4 major financial models – DCF, Discounted Cash Flow model, Leveraged Buyout Model, Comparable Company Analysis Model, and Mergers and Acquisitions Model.

How it is built?

When you look at the financial model it seems complex however it is prepared and positioned easily by using smaller and simpler modules. The important factor to keep in mind here is, to connect each smaller module and create the final financial module.

The first and foremost are the core modules which consist of the Cash flows of the company, its balance sheets, and the income statements.

Next comes, the additional modules which are depreciation and working capital schedule, intangibles schedule, shareholder’s equity schedule, other long-term items schedule, debt schedule, etc.

At last, the additional schedules are linked to the core statement upon its completion.

Q3: What are the common financial modeling practices?

Ans 3.(You can mention the best 3 or 4 practices that help to create a suitable financial model for a company. Go through the best 3 we have listed for your reference)


Financial Modelling is the way toward making a synopsis of an organization’s costs and income as a bookkeeping page that can be utilized to figure the effect of a future occasion or decision.

Clearly recognize inputs (suppositions) and yields (computations or recipes) utilizing designing shows — blue textual style for information sources and dark textual style for equations, concealing, borders, and so on

Excel Tips and Tricks

It is essential to know the excel formulas and functions for instance VLOOKUP, INDEX MATCH, etc to speed up the process and get the correct figures.

Breaking the complex calculations into simpler ones and increasing the dependency on keyboard shortcuts while working on excel accelerate the process and make you efficient personnel in the field of financial modeling

 Layout the financial modal and Design

It is difficult to layout the structure of a financial model in a simple and logical formal. However, this can be accomplished by building the whole model on a solitary worksheet and sections can be made using the group function.

Above are the most basic and important ones to have a good Financial Model layout. You can add in the practices that make the financial model stands out from the rest like – using unique formula per row which is copied across or extensive use of error checks or a consistent column heading throughout the model, etc.  

Q4: What is the key difference between and NPV and XNPV and which function would you use?             

Ans 4: NPV is based upon the assumption that future payments are made on regular basis with equal time intervals. On the other hand, XPNV assumes that the cash flow of a company does not come in equal time intervals and arrived at Net Present value only.

Which one should be used more often? 

Since the NVP takes into consideration that all the time periods are equal, it is more practical to use XNVP which uses specific dates that correspond to each cash flow being discounted in the series for less than a year. (However, this totally depends upon the structure and nature of the business)  

Q5: Pick any financial model you have built and walk me through it.

Ans 5: This is the most important question of all; not only it will show your technical expertise but also play a crucial role in passing the judgment on your selection.

You need to pick a model which allows you to showcase advanced financial modeling knowledge, but remember to be confident about it and not overconfident.

Make sure you are thorough with all the steps to make a correct and effective financial model.

What you can do to answer this question without any hurdles is to build few financial models ahead of the interview, so that at the time of demonstration the models come in handy and you can handle the question without any apprehensions.

Q6: How would you forecast revenue?

Ans 6: There are two approaches to build the financial model – realistic and practical or simple and strong.

The first approach pinpoints varied methods to model revenues with accuracy and the highest degree of detail. Also, one has to take into consideration, the industry-specific details.

For example – if you need to forecast the revenue of the retail industry, you will forecast derive income per square meter and the expansion rate.

In the case of the service industry, the headcounts and income per employee are estimated.

On the other hand, the second approach, which is a simple and quick approach touches on how you can model revenues in a more direct way that is not complex to understand and easy to use. In this approach, you forecast the revenue or future growth basis historical trends and figures.

Q7: How are 3 financial statements linked?

 (The key point to remember while answering this question is to outline the main points instead of giving details at length)

Ans7: Here are the main points to draw your attention to-

  • Net income from the income statement flowing to the balance sheet and cash flow statement
  • Depreciation is added back and CapEx is deducted on the cash flow statement, which determines PP&E on the balance sheet
  • The majority of financing activities affect the balance sheet and cash from finalizing, except for interest, which is present on the income statement.
  • The sum of the last period’s closing cash plus this period’s cash from operations, investing, and financing is the closing cash balance on the balance sheet.

Q8: Tell me about a Financial Model you have built which was weak in nature?

(Well, as you have read and understood, it is the trickiest question to answer. Treat this as same as when you are asked about your weaknesses. Do not highlight your failures but show it as learning)

Ans8: Do not straight away jump to a failed financial model you have made in past, try to draw a comparison between two; one which you could not get it right and the other one which was a success. So be tactful and highlight your strength more.

Q9: How would you perform Sensitivity Analysis in Excel?

Ans 9: Sensitivity Analysis is used as a tool in financial modeling to analyze different values of a set variable impact dependent variable under definite conditions.

For instance, a financial analyst wants to study how a company’s profit margin may be impacted when variables such as cost of goods manufactured and cost of labour change. In this case, sensitivity analysis will come in the role to examine different variables sets of different values and analyze how the profit margin changes in accordance with variables.

Also, talk about the function of the Data table which is the most essential tool in Excel for performing sensitivity analysis, wherein the output sensitivity can be shown by changing up to two independent variables.

Scope of Financial Modeling and Financial Modeler

Financial modeling is based on quantitative analysis to forecast and make projections that help to make prudent financial decisions in an organization. It is majorly used in corporate finance and asset valuation.

In the field of financial research and investment banking, financial modeling projects and forecast the financial statements of the company. The financial modeling is built on historical figures and realistic hypothetical situations to analyze the company’s finance and value.  

Hence, the scope of the financial modeler is bright and broad as models are essential for making a wide range of decisions – including those related to investment, mergers, raising capital, forecast, valuation an investment. 

About Financial Modeling Course

We know enough, how important it is for a financial modeler to keep the skill and knowledge up to date to survive in the competitive world.

There are many institutes worldwide that provide financial modeling courses online and offline as well. Henry Harvin’s Education is one of the known and established names to give in-detailed education on Financial Modeling.  

The certificate given by Henry Harvin after the completion of the Financial Modeling course has an affiliation with the Government of India and MSME.

The Financial Modelling course is well designed by the subject matter experts in a manner to make you an ‘industry expert’. The trainers at Henry Harvin have more than 18+ years of industry experience and possess the subject expertise and teaching experience, globally.  

Henry Harvin’s financial modeling course consists of hands-on training on excel workbooks and case studies. It also provides major career benefits like-

  • Placement assistance after the completion of the course, opening the work opportunities Equity Research, Investment Banking,Credit Ranking Analysis, Financial Analysis, Business Analysis, Project Finance, Fund Management, and Commercial Banking.
  • Henry Harvin is partnered with big brands like Amazon, JP Morgan, and Google that hire certified financial modeling professionals. This will help to open greater job prospects and a boost in a career.
  • Get updated on current demand skills and techniques that make your job profile stands out.
  • Earn Gratifying Certification from Henry Harvin to have a highly paid freelance career or taker the opportunity to work as a full-time professional.
  • Internship to get practical experience of the learning along with complete assistance in placement for 1 year post completion of the course.

So, we hope that the above-mentioned interview questions and answers helped you to have a more clear understanding of how the interview could be conducted and will prepare you to crack the position as a Financial Modeler.

Recommended Reads:


Q1. Where can I find the essential questions in the Financial Modeling interview?

Ans. This blog gives you the most critical interview question you could ask in a Financial Modeling interview. You are recommended to study the best Financial Modeling courses in India, such as Henry Harvin, to gain the proper insights into the course.

Q2. Is it easy to attend a Financial Modeling interview?

Ans. Of course, it is easy with the proper determination and knowledge about the subject. You can enroll in Henry Harvin, India’s largest online platform for Financial Modeling courses. You will get the placement guidance from there.

Q3. How can I prepare for the Financial Modeling interview?

Ans. First, you have to know the basics of the Financial Modeling course. Then you have to prepare for the in-depth knowledge of the subject. Enrolling in any institutes that offer Financial Modeling courses in India, like Henry Harvin is better. From there, you’ll attain the needed information.

Q4. Can I be successful after studying Financial Modeling Courses in India?

Ans. Yes. You can be successful after studying Financial Modeling Courses in India. You’ll have a lot of employment opportunities. And your career graph will always be on the top. Check out Henry Harvin’s late courses now.


  1. For the financial modeling interview questions and answers, that was a terrific experience. I appreciate you for this useful information regarding this blog. I really enjoy this course.

  2. Finance students can read this blog and prepare for the interview. Financial modelling interview questions are listed which typical a financial expert ask freshers. You will get deep understanding of this topic.

  3. I found the finance interview questions compilation extremely useful. The guide’s clear explanations and examples helped me grasp difficult concepts like capital budgeting and financial modeling. It boosted my understanding of finance, allowing me to respond confidently to interviewers’ queries.

  4. Gurteg singh Reply

    I read through this blog to prepare for my financial modelling interview because, in my opinion, it contains all the questions and responses that interviewers typically ask. I appreciate your help very much.Good course

  5. vipul sharma Reply

    There are several ways to find out more about its advantages. It also offers a fantastic community, a useful forum, and tutorials. Amazing blog of financial interview questions I pick up more knowledge from this. We appreciate you giving it to us.

  6. Sunita Bahgel Reply

    I read over this blog in order to prepare for my financial modelling interview because, in my opinion, it contains all the questions and responses that interviewers typically ask. I appreciate all of your help very much. Anyone who is interested in taking the financial modelling course training can do so.

  7. As someone preparing for a financial modeling interview, I found it helpful to review common questions and practice my answers. This helped me feel more confident and prepared for the interview process. Some key topics to study include forecasting, valuation methods, and Excel skills.

  8. This resource on financial modelling interview questions is a must-read for any candidate preparing for a financial modelling case study interview. The answers provided are thorough and provide great insight into what employers are looking for.

  9. Kaushal Aneja Reply

    There are numerous ways to learn more about its benefits. It also has a wonderful community, an effective forum, and tutorials. Amazing blog of financial interview question I learn more things from here. Thanks for providing us.

  10. I gained a lot of knowledge from online course. Despite having some foundational knowledge, I preferred the third Financial Modeling course the most. So it will be difficult yet great if you’re kind of a novice. Reviewing some of the stuff will be excellent for someone with more experience, and you will undoubtedly learn something fresh.

  11. This was a wonderful encounter. Thank you for providing this helpful information about this blog. I really like the interview questions about financial modelling. Its benefits can be learned more about in a variety of methods. It also has an excellent community, a useful forum, and tutorials.

  12. Rohit Sharma Reply

    Having that experience helped me greatly while answering the interview questions on financial modelling. Regarding this site, I appreciate you sharing this useful information. This class is really something I enjoy.

  13. That was a terrific experience. I appreciate you for this useful information regarding this blog. I really enjoy the financial modelling interview questions, course. There are many ways to find out more about its advantages. Additionally, it has a great community, a productive forum, and tutorials.

  14. The Interview Questions and Answers of Financial Modeling was excellent blog, you guys definitely make someone’s day by providing this knowledge! My career will benefit greatly from it. I’m receiving very high-quality course material that is relevant to my abilities. Thanks for sharing financial course blog.

  15. That was a great experience for the financial modelling interview questions. Thank you for sharing this excellent blog-related information. This course is incredibly fun for me. There are numerous ways to learn more about its benefits. It also offers a wonderful community, an active forum, and tutorials. I thanks to HENRY HARVIN to provide me this course.

  16. Thank you so much HENRY HARVIN for this blog, you guys really save a person’s day with this information! It is very helpful for my career. I am getting a very good quality course content related to my skills. I am glad that I found your site and visit it. I really want to appreciate you and all the best for a future posts. I found that the HENRY HARVIN financial modelling Course Institute provided me a new identity and I was also bored of the subjects that I was studying and they provided me exposure in mostly everything. That was a great experience for doing this financial modeling interview questions and answers.

  17. I wanted to get prepared for my financial modeling interview and I just went through this blog, it has all those questions and answers which are asked by interviewers in my opinion. Thank you so much for this great help. If anyone is interested in this financial modeling course Training, So can do this course.

  18. Hi i am vipin , My younger recommended for this career and scope of financial modelling course. And i Tell you this is so easy way to learn this course . These blogs are very helpful for new learners. Amazing blog for learning this financial modeling interview questions and answers. It was like easy to understand. Thank you for clear my doubts on this financial modeling interview questions and answers.

  19. There are numerous ways to learn more about its benefits. It also has a wonderful community, an effective forum, and tutorials.

  20. Extremely detailed and amazing overview of the primary learning techniques used in the financial modeling today and around the world. Professor has a lot of good qualities who also teaches patiently and clearly. Well Done Guys!!

  21. Thank you for sharing your informative information on this blog , I like this financial modeling interview questions and answers. This is best blog for clearing your concepts in this blog. I appreciated your valuable points on this blog.

  22. Kelash sonwal Reply

    That was a great experience for doing this financial modeling interview questions and answers. Thank you for sharing this informative information for about this blog. I like this course very much.

  23. Amazing blog for learning this financial modeling interview questions and answers. It was like easy to understand. Thank you for clear my doubts on this financial modeling interview questions and answers.

Join the Discussion

Interested in Henry Harvin Blog?
Get Course Membership Worth Rs 6000/-
For Free

Our Career Advisor will give you a call shortly

Someone from India

Just purchased a course

1 minutes ago
Henry Harvin Student's Reviews
Henry Harvin Reviews on Trustpilot | Henry Harvin Reviews on Ambitionbox |
Henry Harvin Reviews on Glassdoor| Henry Harvin Reviews on Coursereport