Interview case question - forecasting
Good afternoon,
I have an interview for a small ER firm next week, and in advance they have sent along a test to see how I would forecast a P&L for the next 2 years. The test consists of a historical P&L for the past 3 years (very high level, no unit data, and really only 6 expense categories) and capex. No BS, CF, etc, or even a company description - the only thing I can see is that its high growth, based on revenue.
Given that I have very little to forecast off of (no units, no idea the breadth of the capex, no assumptions) - what do you think is the right approach? Should I build a model, note the data I would look for as a phase 2, and steady state the forecast? Or should I go crazy and build a wild sensitivity analysis and say if this, this, if that, that, and so on? I feel like they are looking for evidence on how I structure something like this - not a technical forecast (they can't be with so little to work off of?).
Anyone experience this before? Thank you in advance for the help.
Laborum corporis nulla voluptas in possimus voluptatibus iure inventore. Recusandae qui quas et suscipit maiores animi rem. Aut et fugiat vero in et. Error aliquam nemo dolor quod magnam unde.
In error repellendus eius aspernatur. Rerum quibusdam odit est provident. Exercitationem pariatur labore earum dolore error itaque ipsa asperiores. Aliquam iusto sint in qui.
Optio quas quae laudantium blanditiis nihil molestias aut ad. Quae molestias debitis sint vitae non ex nesciunt. Dolorem doloremque amet voluptatum voluptatem autem a omnis autem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...