GMAT Integrated Reasoning Financial Table Analysis

1. A company's quarterly revenue increased from $2.4M in Q1 to $3.2M in Q2. What is the percentage increase?

25%

33.3%

40%

50%

Percentage increase = (3.2 - 2.4) / 2.4 × 100 = 0.8 / 2.4 × 100 ≈ 33.3%

Explanation

Percentage increase = (3.2 - 2.4) / 2.4 × 100 = 0.8 / 2.4 × 100 ≈ 33.3%

2. If operating expenses are 35% of revenue and revenue is $5M, what are operating expenses?

$1.5M

$1.75M

$2M

$2.25M

Operating expenses = 35% × $5M = 0.35 × $5M = $1.75M

Explanation

Operating expenses = 35% × $5M = 0.35 × $5M = $1.75M

3. Net income decreased by 15% from Year 1 to Year 2. If Year 1 net income was $800K, what is Year 2 net income?

$680K

$700K

$720K

$750K

Year 2 net income = $800K × (1 - 0.15) = $800K × 0.85 = $680K

Explanation

Year 2 net income = $800K × (1 - 0.15) = $800K × 0.85 = $680K

4. A table shows monthly sales: Jan $120K, Feb $135K, Mar $150K. Which month had the highest growth rate from the previous month?

January

February

March

Growth rates are equal

Feb growth: (135-120)/120 = 12.5%; Mar growth: (150-135)/135 ≈ 11.1%. February had higher growth, not March.

Explanation

Feb growth: (135-120)/120 = 12.5%; Mar growth: (150-135)/135 ≈ 11.1%. February had higher growth, not March.

5. Total assets are $10M, total liabilities are $6M. What is the equity?

$2M

$4M

$6M

$8M

Equity = Assets - Liabilities = $10M - $6M = $4M

Explanation

Equity = Assets - Liabilities = $10M - $6M = $4M

6. If the debt-to-equity ratio is 1.5:1 and equity is $2M, what is total debt?

$1.33M

$2M

$3M

$4.5M

Debt-to-equity = 1.5, so Debt = 1.5 × Equity = 1.5 × $2M = $3M

Explanation

Debt-to-equity = 1.5, so Debt = 1.5 × Equity = 1.5 × $2M = $3M

7. A company's current ratio is 2.5:1. If current liabilities are $400K, what are current assets?

$800K

$900K

$1M

$1.2M

Current ratio = Current assets / Current liabilities; 2.5 = CA / $400K; CA = $1M

Explanation

Current ratio = Current assets / Current liabilities; 2.5 = CA / $400K; CA = $1M

8. Profit margin is 12% and revenue is $8M. What is net profit?

$800K

$900K

$960K

$1.2M

Net profit = 12% × $8M = 0.12 × $8M = $960K

Explanation

Net profit = 12% × $8M = 0.12 × $8M = $960K

9. A table shows three divisions' EBITDA margins: Division A 18%, Division B 22%, Division C 16%. Which division is most efficient?

Division A

Division B

Division C

Cannot determine without revenue figures

Higher EBITDA margin indicates better operational efficiency; Division B's 22% margin is the highest.

Explanation

Higher EBITDA margin indicates better operational efficiency; Division B's 22% margin is the highest.

10. If accounts receivable is $500K and annual sales are $4M, what is the days sales outstanding (DSO)?

30 days

45 days

60 days

75 days

DSO = (AR / Annual Sales) × 365 = ($500K / $4M) × 365 ≈ 45.6 days

Explanation

DSO = (AR / Annual Sales) × 365 = ($500K / $4M) × 365 ≈ 45.6 days

11. Return on assets (ROA) is 8% and total assets are $12M. What is net income?

$800K

$900K

$960K

$1.2M

ROA = Net income / Total assets; 0.08 = NI / $12M; NI = $960K

Explanation

ROA = Net income / Total assets; 0.08 = NI / $12M; NI = $960K

12. A company's inventory is $2M and cost of goods sold is $8M annually. Calculate inventory turnover ratio.

2x

3x

4x

5x

Inventory turnover = COGS / Inventory = $8M / $2M = 4x

Explanation

Inventory turnover = COGS / Inventory = $8M / $2M = 4x

13. Free cash flow is calculated as operating cash flow minus capital expenditures. If OCF is $3.5M and CapEx is $1.2M, what is FCF?

$1.8M

$2.2M

$2.3M

$4.7M

FCF = OCF - CapEx = $3.5M - $1.2M = $2.3M

Explanation

FCF = OCF - CapEx = $3.5M - $1.2M = $2.3M

14. A financial table shows three investment options with returns of 5%, 8%, and 6% respectively. Which investment yields the highest return?

First investment

Second investment

Third investment

First and third are equal

8% is the highest return among 5%, 8%, and 6%.

Explanation

8% is the highest return among 5%, 8%, and 6%.

15. If a company's revenue grows at 10% annually and current revenue is $5M, what will revenue be in two years?

$5.5M

$5.75M

$6.05M

$6.5M

Year 1: $5M × 1.10 = $5.5M; Year 2: $5.5M × 1.10 = $6.05M

Explanation

Year 1: $5M × 1.10 = $5.5M; Year 2: $5.5M × 1.10 = $6.05M

GMAT Integrated Reasoning Financial Table Analysis Quiz

1. A company's quarterly revenue increased from $2.4M in Q1 to $3.2M in Q2. What is the percentage increase?

2.

What first name or nickname would you like us to use?

2. If operating expenses are 35% of revenue and revenue is $5M, what are operating expenses?

3. Net income decreased by 15% from Year 1 to Year 2. If Year 1 net income was $800K, what is Year 2 net income?

4. A table shows monthly sales: Jan $120K, Feb $135K, Mar $150K. Which month had the highest growth rate from the previous month?

5. Total assets are $10M, total liabilities are $6M. What is the equity?

6. If the debt-to-equity ratio is 1.5:1 and equity is $2M, what is total debt?

7. A company's current ratio is 2.5:1. If current liabilities are $400K, what are current assets?

8. Profit margin is 12% and revenue is $8M. What is net profit?

9. A table shows three divisions' EBITDA margins: Division A 18%, Division B 22%, Division C 16%. Which division is most efficient?

10. If accounts receivable is $500K and annual sales are $4M, what is the days sales outstanding (DSO)?

11. Return on assets (ROA) is 8% and total assets are $12M. What is net income?

12. A company's inventory is $2M and cost of goods sold is $8M annually. Calculate inventory turnover ratio.

13. Free cash flow is calculated as operating cash flow minus capital expenditures. If OCF is $3.5M and CapEx is $1.2M, what is FCF?

14. A financial table shows three investment options with returns of 5%, 8%, and 6% respectively. Which investment yields the highest return?

15. If a company's revenue grows at 10% annually and current revenue is $5M, what will revenue be in two years?