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Working Capital assumptions - Management Case, Base Case

Hey guys,

I'm practicing some LBO modelling from a book.

In the working capital assumptions of a case study they have :

- Management Case : DSO = 65

- Base Case : DSO = 60,2

Can someone explain to me how that makes sense ?

A DSO of 60,2 is more optimistic than a DSO of 65 ( less cash trapped in A/R --> lower WC --> source of cash --> higher FCF ).

Am I on crack here ?

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