Airtel Payments Bank Financial Analyst Interview Questions and Answers

Revenue is the total income generated by a business from its normal business activities, usually from sales of goods and services.

• Revenue is the top line of the income statement and is often referred to as sales or turnover.

• It represents the total amount of money a company brings in before any expenses are deducted.

• Examples of revenue include sales of products, services, subscriptions, advertising, and licensing fees.

CAC in profit and loss statement refers to Customer Acquisition Cost, which is the cost associated with acquiring a new customer.

• CAC is calculated by dividing the total sales and marketing expenses by the number of new customers acquired during a specific period.

• It is important for businesses to track CAC to ensure that the cost of acquiring customers does not exceed the lifetime value of those customers.

• High CAC can i...read more

Methods of valuation include discounted cash flow, comparable company analysis, precedent transactions, and asset-based valuation.

• Discounted cash flow (DCF) - estimates the value of an investment based on its future cash flows

• Comparable company analysis - compares the target company to similar publicly traded companies

• Precedent transactions - looks at the prices paid for similar companies in the past

• Asset-based valuati...read more