A stagnant company is a lost company. A company should always look to grow in the future as new competitors will always keep arriving at the scene to eat into the proverbial pie. In addition to that, customer preferences will keep changing. Also, a start-up company may cut profits with lesser assets and costs.
Fill up this table with the data needed
(The “Details needed” column will tell you the source of the information)
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Metric |
Details needed |
This Year |
Last Year |
2 Years |
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Top Line (Revenues) ([This Year / Last Year] − 1) × 100 |
Income |
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Bottom Line (Net Profit) ([This Year / Last Year] − 1) × 100 |
Income |
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EPS (Diluted Earnings per Share) ([This Year / Last Year] − 1) × 100 |
Income |
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Other Key Metric: ([This Year / Last Year] − 1) × 100 |
Income |
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Based on the information collected above, answer the following questions −
● Is your company growing? Is it taking a market share from other companies dealing with the same products and services? Is it investing in newer markets?
● Explain the risks factors of your company and what external factors like regulation, exchange rates, tariff rates, stock market fluctuations, etc., is the company most susceptible to?
● Identify and explain any trends in the Growth metrics.
● Review the company’s stock price performance over the past five years. Find any context you can to major moves upward or downward in the stock. What made investors buy or sell the stock at that time?
● What do the company’s executives say publicly about their strategies around Growth?
● Consider the same questions with regard to any interim period since the company’s most recent fiscal year end.
● Compare the company’s performance and priorities with respect to Growth with those of one or more key comparison companies.
● Identify your impact – how will the above impact your conversations or pitches with this company? What products or services would you offer them based on these answers?