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Pulling the five numbers that matter

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.

Using the Inditex table above, pull the five numbers that matter for FY2025 and say in three sentences how the year went. The release also states that sales grew 7.0 percent in constant currency, that changes in working capital used EUR 803 million of cash (against 198 million the year before), and that net cash is cash of 5,276 plus current financial investments of 5,684 minus financial debt of 2.

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.

How did the year go? Growth, then margins, then cash, then the balance sheet (this comes from the question: is the business growing, profitable, and turning profit into cash?)
- 1. Sales growth, reported and in constant currency
- 2. Gross margin and its change
- 3. Operating (EBIT) margin and its change
- 4. Free cash flow against net profit
- 5. Net cash

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: 1. Sales growth
What a strong candidate does: Reported growth from 38,632 to 39,864. In constant currency the company reports 7.0 percent, so exchange rates took about 4 points off.
Reported sales growth (percent): (39,864 ÷ 38,632 - 1) × 100 = 3.19
Step 2: 2. Gross margin
What a strong candidate does: Gross profit divided by sales: 58.3 percent, up from 57.8 percent, about 42 basis points (hundredths of a percent).
Gross margin FY2025 (percent): 23,222 ÷ 39,864 × 100 = 58.25
Step 3: 3. EBIT margin
What a strong candidate does: EBIT divided by sales: about 20.1 percent, up from about 19.6 percent.
EBIT margin FY2025 (percent): 7,997 ÷ 39,864 × 100 = 20.06
Step 4: 3b. Last year's EBIT margin
What a strong candidate does: For the comparison.
EBIT margin FY2024 (percent): 7,554 ÷ 38,632 × 100 = 19.55
Step 5: 4. Cash against profit
What a strong candidate does: Lease adjusted free cash flow divided by net profit.
Free cash flow as a share of net profit (percent): 4,686 ÷ 6,220 × 100 = 75.34
Step 6: 5. Net cash
What a strong candidate does: Cash plus current financial investments minus financial debt.
Net cash (EUR millions): 5,276 + 5,684 - 2 = 10,958
Step 7: The cash link
What a strong candidate does: As in the first lesson, cash on the balance sheet must tie to the cash flow statement: opening cash 6,382, a net decrease of 1,058 and an exchange rate effect of minus 48.
Closing cash and cash equivalents (EUR millions): 6,382 - 1,058 - 48 = 5,276

The recommendation to listen for

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

Inditex had a strong, cash-rich year: sales grew 3.2 percent in euros and 7.0 percent in constant currency, the gross margin rose to about 58.3 percent and the EBIT margin to about 20.1 percent. Lease adjusted free cash flow was about EUR 4.7 billion, around three quarters of net profit, and the company ends the year with about EUR 11.0 billion of net cash and no financial debt to speak of. Two things to watch: free cash flow fell slightly because working capital used EUR 803 million and capex stayed above EUR 2.7 billion, and a stronger euro cut reported growth by about 4 points. As a next step, read the quarterly split and compare these margins with other listed fashion groups.

Score the candidate

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

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

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.