Investment Banking Interview Prep (comprehensive guide)- IGotAnOffer

Investment Banking Interview Prep Question: ⁉️A company has a 2x EV / Rev multiple and a 10x EV / EBITDA Multiple. What’s the EBITDA margin? Let us know your answer in the comments 𝗙𝗼𝗹𝗹𝗼𝘄 @survivefinance for more investment banking interview prep. #investmentbanking #privateequity #financecareers #financejobs | Financeable Training

Investment Banking Interview Prep ⁉️Assume a company has negative Net Work Capital (NWC), and NWC is proportional to sales. If the sales double overnight, what’s the impact to cash? There will be a positive impact to cash. If a company has negative NWC, that means that current liabilities are greater than current assets. If both grow proportional to sales, the growth in current liabilities will exceed the growth in current assets, resulting in an increase in a liability on a net basis, which is