Interviewer view · keep this screen to yourself

How much cash is hiding in working capital?

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

The food maker in the table above is short of cash. The finance director asks how long cash is tied up today, and how much cash it would free if customers paid 10 days faster.

The prompt refers to Exhibit 1. After reading it, say: "Open Exhibit 1 now."

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Cash freed = days saved x cash per day (this comes from the question: days are the lever, cash is the goal)
- Today: DSO, DIO and DPO, then the cash conversion cycle
- Cash per day: revenue per day for receivables, cost of goods sold per day for inventory and payables
- Cash freed by 10 fewer days of receivables

Exhibit 1

The prompt uses this exhibit, so the candidate opens it right after you read the prompt ("Show exhibit 1" on their screen).

A packaged-food maker in Indonesia (fictional): one year(IDR billions)

A packaged-food maker in Indonesia (fictional): one year
Line	Amount
Revenue for the year	3,650
Cost of goods sold for the year	2,190
Receivables at year end	450
Inventory at year end	360
Payables at year end	240

So-what

Working capital here is 450 plus 360 minus 240, which is IDR 570 billion tied up in running the business.

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: DSO
What a strong candidate does: Receivables 450 divided by revenue 3,650, times 365.
DSO (days): 450 ÷ 3,650 × 365 = 45
Step 2: DIO
What a strong candidate does: Inventory 360 divided by cost of goods sold 2,190, times 365.
DIO (days): 360 ÷ 2,190 × 365 = 60
Step 3: DPO
What a strong candidate does: Payables 240 divided by cost of goods sold 2,190, times 365.
DPO (days): 240 ÷ 2,190 × 365 = 40
Step 4: Cash conversion cycle
What a strong candidate does: DSO plus DIO minus DPO.
Cash conversion cycle (days): 45 + 60 - 40 = 65
Step 5: Revenue per day
What a strong candidate does: One day of receivables is worth one day of revenue.
Revenue per day (IDR billions): 3,650 ÷ 365 = 10
Step 6: Cash freed
What a strong candidate does: Ten fewer days of receivables, at 10 billion a day.
Cash freed (IDR billions): 10 × 3,650 ÷ 365 = 100

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

Cash is tied up for 65 days today, and getting customers to pay in 35 days instead of 45 would free about IDR 100 billion of cash once, without borrowing. This is because each day of receivables holds one day of revenue, about IDR 10 billion. The same logic says 10 fewer days of stock would free about IDR 60 billion, since one day of cost of goods sold is about 6 billion. The risk is that pushing large retail customers to pay faster costs sales or discounts. As a next step, rank customers by how late they pay and start with the largest.

Risks a strong answer names: Large retailers may refuse shorter terms or ask for a discount in return; Cutting stock too far can lead to empty shelves.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.