What are the four basic questions which the Managers or investors are likely to ask concerned with the company at the end of the fiscal year?
There are following five basic which manager or investor seeks information from the company at the end of the fiscal year.
Question 1: Sales
What is the trend for sales for the next 12 to 24 months?
This question allows investor’s capture inherent the opportunities and associated risk that present for both short term and mid-term This provides valuable information that required for investment decision making.
Question 2: Variable cost
What are the associated risks in regard to the procurement of raw material and labor?
This question gives investors a glimpse of various factors that may affect of procurement of raw material and labor. This allows ascertaining the future direction of gross margin which gives insightful information regarding the potential earning of the company.
Question 3: Cash
How does company want to use cash for future growth?
This questions is essential for understanding use of cash that led to increase the price of stock or may depressed it.
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