Interviewer view · keep this screen to yourself

A USD 60 million series, in the P&L and in cash

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.

An illustrative streamer pays USD 60 million upfront for a new series. It amortizes the cost 50 percent in year 1, 30 percent in year 2, and 20 percent in year 3. What is the expense in each year, and how large is the gap between cash paid and expense in year 1?

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.

Expense per year = cost x amortization share; cash is paid upfront
- Year 1, 2, and 3 expense
- Year 1 gap = cash paid minus year 1 expense

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: Year 1 expense
What a strong candidate does: 50 percent of 60.
Year 1 expense (USD millions): 60 × 0.5 = 30
Step 2: Year 2 expense
What a strong candidate does: 30 percent of 60.
Year 2 expense (USD millions): 60 × 0.3 = 18
Step 3: Year 3 expense
What a strong candidate does: 20 percent of 60.
Year 3 expense (USD millions): 60 × 0.2 = 12
Step 4: Year 1 cash gap
What a strong candidate does: Cash out of 60 against expense of 30.
Year 1 cash minus expense (USD millions): 60 - 60 × 0.5 = 30

The recommendation to listen for

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

The streamer should manage cash, not only reported profit, because in year 1 the P&L shows USD 30 million of cost while USD 60 million of cash has already gone. First, the series is expensed at USD 30 million, USD 18 million and USD 12 million over three years. Second, this means a streamer that grows its content budget fast will show weaker cash than profit for years. The risk is that lenders or investors judge the business on profit and miss the cash gap. As a next step, track content cash spend against amortization every quarter.

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.