K
KnowMBAAdvisory
🧪

Knowledge Challenge

A friend thinks you can answer this question about Working Capital Forecasting

A B2B SaaS company is growing ARR from $20M to $40M over 12 months. DSO is 65 days, deferred revenue grows in line with ARR (annual prepay), and there's no inventory. Roughly how much cash will working capital CONSUME or GENERATE?