THE PLAYGROUND
Growth meets the cash constraint
A driver-based one-year forecast.
LIVE EXPERIMENT
Growth meets the cash constraint
Closing cash / (funding gap)35
Before you move a sliderCan faster growth require new funding even when forecast profit is positive?
Closing cash = 50 + CFO 65 − capex 80 = 35
READ THE MECHANISM
Growth increases operating earnings but may tie up working capital and require capacity investment. Test downside assumptions jointly; a sensitivity is not a probability forecast.
Model assumptions & units
Hypothetical $000. CFO = revenue × cash operating margin × 75% − change in NWC, using an assumed 25% tax on this cash-profit proxy. No D&A, debt, distributions or minimum-cash reserve. A negative closing cash means a funding gap, not a feasible cash balance.