The "3-Statement Financial Modeling" test

Water Cooler Careers
#1

So I’ve been doing some reading and see that some people list this as a skill on Linkedin, and that some people ask for this during round 2 interviews

http://www.streetofwalls.com/finance-training-courses/investment-banking-technical-training/three-statement-financial-modeling/

  1. How long would it take one of you CFAs to actually do this? 3 hours? 2 hours?

  2. In what roles are you expected to be able to do this? I imagine anyone in investment banking/ private equity has to do this. What about Equity Research people?

  3. What experience level is this exercise intended for? I’m going to guess that fresh graduates from their Bachelors in Finance won’t be able to do this during their first interview. Are you supposed to be able to do this as an analyst with 1-3 years experience? Or as an associate with 3-6 years experience?

#2

With plenty of guidance in Uni, I managed to do it in 3 days. LOL

I have friends who was asked to explain this method step by step in their second IB interview. No calculations required, just go through each step theoretically with the interviewer.

#3

I have an investment banking prep PDF that shows how all the statements are related. And I knew it very well when I was doing equity research interviews – but the most common question was that $10 of depreciation question.