Question

how do i assess a company's its future sales growth?

how do i assess a company's future level of profitability and profit retention?

Answer 1

Answer:

Answering question first as HOMEWORKLIB's guidelines:

1.Sales growth is the percent growth in the net sales of a business from one fiscal period to another.Net Sales are total sales revenue less returns,allowances and discounts.Here,you need the net sales figure from the 2 financial periods that you are comparing.A separate income statement for each of the periods.Each should cite the net sales for the relevant period.

To calculate,subtract the net sales of the prior period from that of the current period.Then,divide the result by the net sales of the prior period.Multiply the result by 100 to get the percent sales growth.

Following is the formula to calculate the sales growth:

Growth rate=[(Net sales of current period-Net sales of previous period)/Net sales of previous period]*100