IntermediateTECHNICAL
Describe a complex financial model or forecasting tool you built or improved. What assumptions did you include, how did you validate the model, and how was it used to support decision-making?
Financial Analyst
General

Sample Answer

I built a three-statement rolling forecast that tied revenue drivers to headcount, CAC, and churn for a $120M SaaS business. Assumptions included ARR growth by cohort, monthly churn by cohort, average selling price, ramp curves for new sellers, and hiring lead times. I validated the model by back-testing two years of inputs (error vs actual) and running Monte Carlo simulations to quantify downside risk—95% confidence interval was +/-3.8% on ARR after calibration. The model was used monthly in the exec meeting to recommend hiring pauses, prioritize product spend, and set cash runway scenarios; that guidance helped delay a $6M discretionary spend and extended runway by 4.5 months.

Keywords

Link assumptions to operational drivers (hiring, CAC, churn)Validate with back-tests and scenario/Monte Carlo analysisUse the model to make specific, actionable recommendations