Finance Candidate Interview Questions

Preparing for a finance interview can be daunting. Knowing the types of questions to expect and how to structure your answers is crucial. Here’s a breakdown of common finance interview questions categorized by area:

Technical Skills & Knowledge

These questions assess your understanding of core financial concepts and principles.

• Walk me through your resume. This isn’t just a summary. Highlight experiences relevant to the role and explain how your skills translate to the specific job duties. Quantify your accomplishments whenever possible.
• Explain [Financial Concept] (e.g., discounted cash flow, capital asset pricing model, WACC). Demonstrate your grasp of the theory and its practical applications. Be clear, concise, and use simple language. Avoid jargon if you can explain it more clearly without.
• What are the different valuation methods? Discuss intrinsic valuation (DCF, dividend discount model), relative valuation (comparable company analysis, precedent transactions), and asset-based valuation. Explain the pros and cons of each and when they’re most appropriate.
• What are the three financial statements? How are they linked? Describe the balance sheet, income statement, and cash flow statement. Explain how changes in one statement impact the others. For instance, retained earnings on the balance sheet is linked to net income from the income statement.
• Tell me about a time you used Excel to solve a financial problem. Detail the problem, the steps you took, the formulas you used, and the results you achieved. Mention specific functions like VLOOKUP, INDEX/MATCH, SUMIF, or data tables.

Behavioral Questions

These assess your soft skills, teamwork abilities, and how you handle challenging situations. Use the STAR method (Situation, Task, Action, Result) to structure your answers.

• Tell me about a time you made a mistake. How did you handle it? Be honest and own your mistake. Focus on what you learned from the experience and how you corrected it.
• Describe a time you worked effectively under pressure. Illustrate your ability to prioritize tasks, stay organized, and meet deadlines in a stressful environment.
• Tell me about a time you disagreed with a colleague. How did you resolve it? Show that you can communicate respectfully, consider different perspectives, and find common ground.
• Why are you interested in this role? Demonstrate that you’ve researched the company and the position. Explain how your skills and career goals align with the opportunity.
• Why are you interested in finance? Convey your passion for the field and your understanding of its importance. Highlight specific aspects that intrigue you.

Company-Specific Questions

These questions gauge your knowledge of the company and its industry.

• What do you know about our company? Showcase your research on the company’s history, products/services, financial performance, and recent news.
• What are our company’s strengths and weaknesses? Demonstrate your ability to analyze the company’s competitive position.
• What are the current trends in the [industry] industry? Show that you’re aware of the challenges and opportunities facing the industry.
• Where do you see our company in 5 years? Formulate an opinion based on your research. Show how you would help them get there.

Remember to practice your answers beforehand and tailor them to each specific role and company. Good luck!