Part - Investment Analysis
For this part of the assessment, imagine that you are looking into investing in a manufacturing company, such as a car company or a steel company. Your goal is to create a plan for determining the potential strength of an investment in the company (investment analysis) and determining how the company might perform over a selected period of years (forecast).
After considering a potential investment in this manufacturing company, address the following:
What are some of the qualitative factors that must be considered when selecting a company in which to invest?
What financial ratios would you examine, and why?
What non-financial factors would you examine, and why?
Use research from at least two references to support your ideas.
Part - Forecast (1-2 pages)
Using the same hypothetical manufacturing company described above, address the following questions related to forecasting the performance of the company:
- How would you forecast revenue, profitability, and asset management, such as inventory control and accounts receivable, for a hypothetical manufacturing company?
- What ratios would you analyze?
- What techniques would you use? Why?
- What non-financial factors would be important in your analysis?
Use research from at least two references to support your ideas.