Maths Required

For Consulting
Interviews
 Consulting case
interview math
formulas
Revenue= Volume x Price
Cost= Fixed cost + Variable cost
Profit= Revenue – Cost
Profit margin / Profitability= Profit /
Revenue
Return on Investment (ROI)= Annual
profit / Initial investment
 Consulting case
interview math
formulas
Breakeven / Payback Period = Initial
Investment / Annual Profit
EBITDA = Earnings before interest,
taxes, depreciation, and amortization.
Profits that have had interest, taxes,
depreciation, and amortization added
back to them makeup EBIDTA. It is
helpful when comparing businesses
from different industries.
 Optional Math
Formulas
Return On Equity (ROE)= Profits /
Shareholder equity
Return On Assets (ROA)= Profits
/ Total assets
 Fast mental math:
rounding numbers
It's important to round numbers properly
to not significantly affect the answer after
you're finished. Never round by more than
10%, which is a good rule to follow. It is
also beneficial to round up and down so
that the impacts, to some extent, cancel
each other out. Examine to see whether
your response truly makes sense at the end
as well.
 Fast mental math:
dealing with large
numbers
When working with huge numbers, like 200
million, it helps to first remove the zeros
and then add them back. To make keeping
track easier, use labels (m, k, b).
Simplifying is the key to mastering mental
case interview math quickly. 5 × 30 million,
for instance, becomes 5 x 3 = 15 with 7
zeros.
 Fast mental math:
break down numbers
into smaller parts
Another tip for handling case
interview math that will make the
process go faster is dividing
numbers into smaller pieces. As
an example, 14 x 6 = (10 x 6) + (4
x 6) = 84.
 Fast mental math:
subtracting from
numbers with 1
followed by zeros
Another shortcut for case interview
math is this. Simplify once more.
1000-536 becomes 999-536+1 =
464.
 Fast mental math:
group numbers into
multiple of 10 (addition)
To perform addition quickly in case
interviews, organise numbers into
multiples of 10.

10 + 10 + 20 + 21 = 61 is equal to
3+7 + 4 + 6 + 13 + 7 + 21.
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