Finance Lab
Decide first. Then find out.
Each case puts you inside a company with incomplete information and real constraints. Choose a strategy, see the consequence the engine produces, and write the reasoning that justifies it.
Growing revenue, shrinking cash
Revenue is up sharply, yet cash has fallen. Customers are taking longer to pay, and the plant has been building inventory to avoid stock-outs. The company is profitable on paper and tight on cash.
- Revenue growth
- +22% quarter on quarter
- Cash
- ৳2,100,000 → ৳1,518,000
- Receivable days
- 58 → 74 days
- Inventory days
- 96 → 118 days
The capacity decision
Demand is reliable and prices are stable. The board can invest in new equipment, repay debt, or hold course and distribute more to shareholders.
- Capacity utilisation
- 97%
- Order backlog
- 6 weeks of production
- Cash on hand
- ৳1,518,000
- Long-term debt
- ৳2,400,000 at 9.5%
Testing pricing power
Margins are reasonable but volume growth has stalled. The team must decide whether to compete on price or defend margin.
- Gross margin
- 48.8%
- Operating margin
- 21.3%
- Volume trend
- flat for 4 quarters
- Estimated price elasticity
- −1.1
Funding growth without breaking coverage
The region offers higher growth but slightly lower margins than the home market. The company must choose between debt, new equity, or a mix.
- Current debt / equity
- 0.53×
- Interest coverage
- 2.6×
- Cost of debt
- 9.5%
- Return on equity
- 5.9%