Due diligence, earnings quality and working capital
Part of the Big Four & Professional Services learning and recruiting path. Read the explanation and example, attempt the task, then open the self-check.
Know what to learn for your role.
From foundations to a work sample, with sources, tasks and self-checks.
Understand
Distinguish reported earnings from sustainable performance. Examine one-offs, customer concentration, cash conversion and seasonal working capital. Explain adjustments economically rather than adding back costs to suit a price.
Worked example
Illustrative EBITDA 10 includes a one-off gain 3 and evidenced one-off restructuring cost 1. Adjusted recurring EBITDA is 10 − 3 + 1 = 8.
Examples and numbers are educational, not employer questions, live market data or hiring criteria.
Practise and keep your output
List five potential earnings adjustments with evidence, recurrence and cash impact. Examine monthly working capital.
Keep inputs and sources, assumptions, steps, results and uncertainties in your own document. Attempt independently before checking below.
After attempting: answer and self-check
Check adjustment signs and the underlying facts. Annual averages can hide seasonal peaks.
Official channels and further reading
Pathline authors these starter lessons. These supplementary field links do not imply provider review or endorsement. Confirm Hong Kong availability and eligibility separately.
- KPMG · Campus hires ↗
Campus directory; filter location and service line.