Due: September 30, 2024 11:59 PM
Company Name: Microchip Technology, Inc
Objective: Equip students with practical skills to forecast future sales using historical data and calculate the external financing needs for a company using the Bloomberg Terminal, integrating theoretical concepts with real-world financial analysis.
Assignment Instructions:
- Company Selection
- Each student selects (Assigned Company) a publicly traded company with variable growth patterns over recent years. This selection encourages exploration within sectors known for volatility or growth potential.
- Data Collection
- Students will use the Bloomberg Terminal to retrieve their selected company’s historical sales data for the past five years. This step blends the acquisition of real-time financial data with analytical objectives.
- Analysis Tasks:
- Sales Forecasting Using the Percentage of Sales Method
- Apply the percentage of sales method to forecast the next two years of sales based on historical growth rates.
- Develop a forecast model in a spreadsheet where adjustments can be made to the growth rate based on different hypothetical economic scenarios.
- Provide scenarios for modeling of different growth scenarios, such as an economic downturn or a boom period.
- Reflect on companies’ challenges when seeking external financing, promoting empathy and understanding of financial decision-making pressures.
- Deliverable
- Prepare a comprehensive three-page report containing:
- A detailed explanation of the forecasting methodology and the rationale behind chosen growth projections.(use word document)
- Data tables and graphs that visually represent the sales forecasts and external financing calculations. (Use excel)
- A critical analysis discussing the potential impacts of external economic factors on financing needs and company growth (use word document)
