Investment Analysis (1–2 pages)
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 3. 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?