If you’re applying for a finance internship, banking graduate programme, or investment-related entry-level role, one obstacle stands between you and the interview stage: the numerical reasoning test.
Whether it’s administered by SHL, TalentQ, Aon/Cut-e, Korn Ferry, or an internal test provider, numerical reasoning assessments are a critical early filter used by virtually every major bank, asset manager, insurer, corporate finance team, or fintech employer.
This comprehensive guide explains everything you need to know, including:
- what numerical reasoning tests actually measure
- why finance employers rely on them
- how scoring works
- what makes these tests uniquely challenging
- core strategies to dramatically improve your score
- 5 practice questions (with solutions)
By the end, you’ll understand not only how to prepare, but why preparation is absolutely essential if you want to compete at the highest level.
Also see these article for more information on Online Assessments:
What Is a Numerical Reasoning Test?
A numerical reasoning test is a standardized aptitude assessment designed to measure your ability to:
- interpret numerical data
- analyze charts, graphs, and tables
- apply basic and intermediate arithmetic
- identify trends and anomalies
- make data-driven decisions quickly and accurately
Contrary to popular belief, these tests are not about advanced mathematics. You won’t be asked to solve calculus or complex algebra. Instead, they evaluate:
Core Skills Measured
- numerical literacy
- proportional reasoning
- percentage manipulation
- multi-step logic
- accuracy under pressure
- data interpretation
- time-efficient problem solving
Common Question Formats
- tables and charts requiring calculation
- percentage change
- growth rates (CAGR, monthly/annual change)
- ratios and proportional adjustments
- currency conversions
- comparative data analysis
- multi-variable decision questions
Typical Test Structure
- 15–25 questions in 15–25 minutes
- difficulty increases throughout
- strict time pressure prevents checking your work
- wrong answers often penalize indirectly because time is scarce
Why Numerical Reasoning Tests Matter So Much in Finance Recruitment
Finance is an industry built on numbers, risk assessments, and rapid decision-making. Employers need graduates and interns who are not only analytically sharp but can also perform accurately under stress.
Here’s why numerical reasoning tests are a cornerstone of finance recruitment.
2. They Filter Out 60–80% of Applicants
Most large finance employers receive 10,000+ applications per year for a few hundred roles.
Online assessments quickly reduce this pool by:
- identifying candidates with strong quantitative reasoning
- removing applicants who are not prepared
- ranking candidates by percentile
Failing the test = immediate rejection, regardless of:
- your GPA
- your university
- your internship experience
- your motivation
This explains why some applicants never receive interview invitations despite strong CVs.
2. They Predict Job Performance in Finance Roles
Numerical reasoning aligns with key responsibilities in finance:
- evaluating investment opportunities
- modelling revenue and cost scenarios
- interpreting financial statements
- assessing risk and variance
- identifying trends in market data
If you cannot quickly understand data under time pressure, you will struggle in analyst-type functions.
Thus, employers view your numerical test score as an objective signal of your potential.
3. Competitors Are Preparing and Often Months in Advance
Many people are not walking into these tests blind. Many:
- use paid preparation tools
- complete dozens of practice tests
- learn shortcuts to boost speed
- study specific provider-style patterns
- benchmark themselves against graduate-level cutoffs
If you don’t prepare, you’re competing at a major disadvantage.
4. Many Finance Firms Use Adaptive Testing
TalentQ, Aon/cut-e, and Korn Ferry often use adaptive algorithms, meaning:
- questions get harder as you perform better
- the test adjusts to your ability level
- your final score depends heavily on early accuracy
- guessing can damage your adaptive difficulty score
This means you need a strategy, not guesswork.
What Makes Numerical Tests in Finance Particularly Difficult?
Numerical reasoning tests used by banks and financial institutions are often more challenging than those in other industries.
Some Providers Randomize Values
Instead of simple tables, you might see:
- multi-factor revenue projections
- portfolio allocation datasets
- cost breakdown grids
- unit economics over time
These require scanning, filtering, and computing in seconds.
Many Finance Tests Penalize Time Spent
Some tests track:
- time per question
- hesitations
- rapid guessing
Your pacing, not just your accuracy, influences performance.
The Scoring Benchmark Is Brutal
Finance is competitive. Only the top 15–25% typically progress.
In elite banks, even top 10% is sometimes required.
How to Prepare for Numerical Reasoning Tests (Proven Strategies)
Here are strategies used by candidates who score in the top percentiles.
- Learn the Question Types Before Practicing: Don’t jump straight into test-taking.
Understand the frameworks first:- percentage change
- ratio and proportion
- difference vs. growth
- weighted averages
- multi-variable data interpretation
- Practice With Realistic Time Pressure: Recreating time pressure is crucial because:
- fear of time affects accuracy
- guessing increases when stressed
- fatigue affects multi-step questions
- Always practice with a timer.
- Build a Calculation Shortcut Toolkit: Top scorers use shortcuts for:
- compound rate approximations
- fast ratio comparisons
- cancelling units and factors
- simplifying fractions mentally
- These save 10–20 seconds per question.
- Learn the Patterns of Each Test Provider: Every provider has a unique style:
- SHL:
- table-heavy
- moderate difficulty flow
- strict timing
- TalentQ:
- adaptive difficulty
- harder multi-step calculations
- minimal time per question
- Aon/cut-e:
- extremely short tests
- rapid-fire, simple-style questions
- highly punishing of slow thinking
- Korn Ferry:
- tricky distractors
- multi-step reasoning
- SHL:
Numerical Reasoning Practice Questions (Finance-Specific)
Question 1 Multi-Step Percentage & Trend Analysis
A company reports the following quarterly revenues (in $ millions):
| Region | Q1 Sales | Q2 Sales | Cost Margin |
|---|---|---|---|
| EU | €42m | €46m | 35% |
| US | €55m | €52m | 40% |
| APAC | €30m | €34m | 32% |
What percentage of the total annual revenue came from Online Revenue?
A. 44.1%
B. 45.3%
C. 46.7%
D. 48.2%
Question 2 Ratio & Allocation Adjustment
A €120 million investment portfolio is allocated in the ratio 4 : 5 : 6 across:
- Bonds
- Equities
- Alternatives
If the allocation to Equities increases by 25%, what is the new ratio of (Bonds : Equities : Alternatives)?
A. 4 : 6.25 : 6
B. 4 : 5 : 6
C. 4 : 7.5 : 6
D. 4 : 6 : 6
Question 3 CAGR (Compound Annual Growth Rate)
A fintech company’s revenue increases from €80 million to €110 million over 3 years.
What is the approximate CAGR?
A. 8.9%
B. 10.8%
C. 11.4%
D. 12.5%
Question 4 Multi-Variable Profit Calculation
| Region | Q1 Sales | Q2 Sales | Cost Margin |
|---|---|---|---|
| EU | $42m | $46m | 35% |
| US | $55m | $52m | 40% |
| APAC | $30m | $34m | 32% |
Profit is calculated as:
Profit = Sales × (1 − Cost Margin)
Which region achieves the highest profit in Q2?
A. EU
B. US
C. APAC
D. EU & APAC (Tie)
Question 5 Currency Conversion & Arbitrage Logic
A trader observes the following exchange rates:
| Pair | Rate |
|---|---|
| 1 EUR → USD | 1.12 |
| 1 USD → JPY | 150 |
| 1 EUR → JPY (market) | 166 |
Is there an arbitrage opportunity, and if so, what is the profit for converting €10,000?
A. No arbitrage
B. Profit ≈ €48
C. Profit ≈ €120
D. Profit ≈ €185
✔ Answers & Explanations
Answer 1: C. 46.7%
- Total Online Revenue = 48 + 54 + 52 + 60 = 214
- Total Retail Revenue = 62 + 58 + 66 + 72 = 258
- Total Annual Revenue = 472
Online % = 214 ÷ 472 ≈ 46%–47% → closest: 46.7%
Answer 2: A. 4 : 6.25 : 6
Equities original = (5/15 × €120m) = $40m
Increase by 25% → $50m
New ratio: Bonds = 4, Equities = 6.25, Alternatives = 6
Answer 3: B. 10.8%
CAGR = (110 / 80)^(1/3) − 1 ≈ 10.8%
Answer 4: B. US
EU profit = 46 × 0.65 = 29.9
US profit = 52 × 0.60 = 31.2
APAC profit = 34 × 0.68 = 23.12
Highest = US
Answer 5: C. Profit ≈ €120
Implied cross-rate: 1 EUR → 1.12 USD → 1.12 × 150 = 168 JPY
Market = 166 JPY → arbitrage exists
Difference = 2 JPY per EUR → 20,000 JPY profit
Convert back ≈ €120
Final Tips for Achieving a Top Percentile Score
- Don’t rush the first few questions in adaptive tests, they determine your difficulty level.
- Use estimation when exact precision isn’t needed.
- Practice mental math daily (percent → fraction → decimal conversions).
- Learn test-provider patterns.
- Simulate real testing conditions every time you practice.
