Financial Fundamentals for Case Competitions

You do not need a full investment-banking model to win most case competitions. You need simple financial logic that supports your recommendation.

The minimum model

• Revenue = customers x frequency x average spend
• Costs = fixed costs + variable costs
• Profitability = contribution margin and payback direction

Where teams lose marks

• no link between recommendation and numbers
• unrealistic adoption assumptions
• no downside scenario

What to show on one slide

• base-case value impact
• one key assumption
• one downside sensitivity
• break-even direction

Mini ANZ example

If you recommend a new channel for a beverage brand, show expected channel contribution, cost to launch, and how quickly the channel recovers setup cost.

Edge upgrade

Add one simple decision rule: "Proceed only if break-even occurs before X months." This makes your recommendation look executable.