Previously in this course, you learned how to calculate year-over-year (YOY) revenue growth as a percentage and compiled the financial statements for the same company you have used for your milestones. In this discussion, you’ll start thinking about the future of the company and project the company’s future revenue growth percentage and gross profit margin. To make your projections, use your knowledge of the company’s history and the information from the external research you previously completed. Even a 1% sway in the revenue growth rate or the gross profit margin can significantly affect the final valuation. Therefore, it’s important to rely on key facts, not your opinion, when you make your projections. You will explain your assumptions used in your projections.
In your initial post, address the following:
- Provide the name of the company and a link the financial statements.
- Project the future revenue growth rate for the next three years of the company.
- Explain the assumptions you used to predict the company’s revenue growth rate(s) for the next three years.
- Project the future gross profit margin(s) for the next three years of the company.
- Explain the assumptions you used to predict the company’s gross profit margin(s) for the next three years.