Candidate view
Same EBITDA, very different cash
The prompt
Two fictional companies each report EBITDA of USD 100 million. A mobile operator in Southeast Asia has depreciation of 45 and spends 50 a year on its network. A software firm has depreciation of 5 and spends 5 a year on equipment. Its working capital falls by 5 because customers pay a year in advance. Tax is 20 percent for both (illustrative). Which business produces more cash?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
Case timer
00:00
Notes stay on this page only. They are not saved and are gone when you leave or reload.
Finished the case and heard your feedback? Mark it done so it counts in your progress on this device.
Next: another case in Partner mode
Each case you answer out loud and hear scored makes the next one easier to open and close.