Assessing A Company's Future Financial Health - Tathapart
Assessing A Company's Future Financial Health - Tathapart
Health
Assessing the long term financial health of a company is an important
task, both for insider and outsider of a company.
The key issue in assessing the companys financial health is whether
the corporate system of goals, product market strategies, investment
requirements, and financing capabilities are in balance.
1.What are
managements goals for
company?
2.In which product markets
does management plan to
compete?
a.What are the managements goals
in the various product markets?
b.What is the strategy in each
product market?
3.What are the market,
competitive, and operating
characteristics of each
product market?
a.What is the growth of primary
demand in each product market? Are
sales seasonal or cyclical?
b.What are the strategies of the
companys competitors?
c.What are the companys operating
policies?
d.What are the main market,
competitive, and operating risks?
4.What volume and nominal
sales growth are likely for the
companys units, individually
and collectively?
5.What investments must
be made in accounts
receivables, inventory, and
plant and equipment to
support the various
product market strategies?
What will happen to the
level of total assets over
the next 3-5 years?