Forecast Period and Forecasting Revenue †MyAssignmenthelp.com

Question: Discuss about the Forecast Period and Forecasting Revenue Growth. Answer: Introduction: Next Financial year forecasted revenue is measured with the help of growth in the historical data, Future economic condition, Industry specific information, political and government impact over the organisation. In all above historical data with growth is very important to arrive at forecasted data. We have calculated yearly growth of revenue of the companies. Revenue of the company is including the revenue from operation of hotel, Revenue from hotel and other Management services, Interest Income and dividend income. Growth in the revenue of the company is fluctuating and it is decreased as well as increased in last five year. If we are looking for average growth in the revenue of the company is 5.22%. The revenue of the company in the year 2016 is 1440739 and expected growth rate is 5.22% and forecasted revenue for next year will be 15,15,968.49. Revenue of the company was increased by 45% in the year 2011 as compared to 2010 which is much higher growth percentage but the same was decreased in the year 2012 by 42% and again in the year 2013 by 7.61%. In the year 2014 the company was utilised its resources very efficiently and growth in revenue of 29% is recorded. Then there is another decrease of 6.02% in the year 2015 and there is an increment of 12.67% in the year 2016. Economic conditions are favourable for this industry as the service sector is growing with a multiplier rate. So there is no adverse impact over the forecasted revenue. Growth of the company is good as compared to the industry. The Company will grow with the multiplier rate in future. Historical data of the company is obtained from the Annual report of the company. The goal of the company is high as looking of the Management of the company towards positive growth is reflected in the annual report. The Directors are proposing to enter into the new sector of job work under which revenue of commission or charges is booked. According to the industry analysis the growth in service sector is high in the future. For An investor this company is Target Company as company has started growing and will grow with a higher rate in future. Average growth of the company is recorded at 5.22% and forecasted data is calculated based on the same. Future forecasted data is helpful for the company to utilise its resources in the effective manner. If the organisation is able to manage its resources and convert the same into money then growth of the organisation is certain. The organisation may see exponential growth in revenue in the near future if the future economic conditions are in favour of the organisation. Reference: Z Kristina, (2015), Stock Analysis: Forecasting Revenue and Growth, https://www.investopedia.com/articles/active-trading/022315/stock-analysis-forecasting-revenue-and-growth.asp M Ben, (n.d.), DCF Analysis: The Forecast Period Forecasting Revenue Growth, https://www.investopedia.com/university/dcf/dcf1.asp Barry Blom, Salomon A. Guajardo, (2001), Revenue Analysis and Forecasting, https://gfoa.org/revenue-analysis-and-forecasting J Glenn, (n.d.), Tax Analysis and Revenue Forecasting, https://ideas.repec.org/p/qed/dpaper/169.html