What is the GMAT?
The GMAT stands for the Graduate Management Admission Test. It is a standardised exam used by many business schools and universities worldwide when considering applicants for postgraduate business-related programmes, such as MBA or other master’s courses in business and management.
The purpose of the GMAT is not to examine your understanding of a specific subject such as economics, law or marketing. Instead, it measures the underlying analytical, reasoning and communication abilities that are necessary to succeed in a demanding graduate-level business course.
Because the exam is standardised and globally accepted, it allows institutions to compare candidates from different academic, cultural and geographical backgrounds on a more even playing field.
If you are planning on taking the test, our GMAT preparation and top tips article might be useful for you!
How the GMAT is structured
The GMAT (in its latest format) assesses a variety of reasoning and communication skills rather than specialist knowledge.
Here are the main components:
- Verbal Reasoning – This section tests your ability to read and understand written material, evaluate arguments, and correct written English, including grammar, sentence structure and clarity.
- Quantitative Reasoning – This section assesses mathematical and problem-solving skills, such as basic arithmetic, algebra, and reasoning under time pressure, rather than advanced university-level mathematics.
- Data / Integrated Reasoning (sometimes called Data Insights in newer versions) – This section evaluates your ability to interpret data from graphs, tables and multiple information sources, and to draw logical conclusions, which is highly relevant for business studies and management decision-making.
- Analytical Writing (in earlier versions) – Historically, the GMAT included an essay section, where candidates had to analyse an argument and present a structured critique. This measured writing, reasoning and analytical thinking.
The current exam format emphasises reasoning, data analysis and verbal/mathematical skills rather than subject-specific knowledge. Because it assesses skills that reflect long-term development rather than what can be crammed at the last minute, the GMAT offers a fair and consistent benchmark of potential for success in business school.
Why business schools use the GMAT
A useful tool for comparing applicants
With candidates from diverse academic, cultural, and professional backgrounds, admissions teams need an impartial standard to assess future academic performance. The GMAT provides a globally recognised measurement of core skills valued by business schools.
Predicting academic success
The GMAT is considered a reliable predictor of how well a candidate might cope with the pressure and scheduled of a postgraduate business or management programme. The skills it tests, such as reasoning, analysis and data interpretation, are important for success in coursework and beyond.
Demonstrating commitment and readiness
Because the GMAT is specifically designed for business school applicants, taking it signals to admissions teams that you are serious about pursuing business studies. This can be particularly helpful when applying to competitive programmes.
Supporting fair access to scholarships and international admission
Many business schools worldwide accept GMAT scores for selection. This broad reach allows students from different countries to be fairly compared for admission and funding opportunities.
What the GMAT does not measure
While the GMAT assesses important academic reasoning and data-handling skills, it does not evaluate more subjective qualities such as creativity, interpersonal skills, leadership, motivation or career experience. These aspects remain part of the wider application review, which includes essays, interviews and references.
The GMAT also does not test specialised knowledge in business, finance or economics. It is not intended as a certification in any particular subject, but rather as a measure of transferable skills.
Who typically takes the GMAT
The GMAT is most often taken by:
- Graduates who wish to apply for an MBA or a master’s in management, finance, marketing or related business fields.
- Young professionals with some work experience who want to transition into a business-focused postgraduate degree.
- People from non-business academic backgrounds, such as engineering, sciences or humanities, who want to move into business or management. The GMAT’s impartiality and skills-based approach makes it accessible even if you did not study business as an undergraduate.
Because many programmes around the world accept GMAT scores, the test remains a central step in applying to graduate business education internationally.
In summary
The GMAT is not a test of your knowledge in finance, marketing or any specific business area. It is a widely accepted, standardised measure of reasoning, analysis, data interpretation and communication skills. By taking the GMAT, you give prospective business school admissions teams a consistent and objective way to assess your readiness to succeed, regardless of which country or institution you apply to. At the same time, schools still evaluate other elements of your profile, such as experience, motivation and personal qualities, so a strong GMAT score helps but does not guarantee admission.