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.