How to calculate the five-year average growth rate of a company's economic income?

How to calculate the five-year average growth rate of a company's economic income? In the process of investment, we will encounter how to predict the financial situation of a company in the next few years. Today we will talk about how to make a simple and effective financial forecast for the next few years. In fact, it can be calculated and analyzed from these aspects, namely: operating income forecast, gross profit and gross profit, total profit and net profit, and sensitivity analysis. These things are not difficult, even simple.

In this regard, we can start with the revenue forecast, combine the past product revenue and the company's orders, predict the annualized growth rate of each product, and then we can predict the operating income in the next few years. Then according to the gross profit margin of each product, the gross profit margin of the company can be calculated. Combined with business tax, three expenses and non-operating income and expenditure, the total profit of the company is calculated, mainly based on historical situation to predict the future. After deducting income tax, you can get the company's net profit.

Combined with the flexibility of the company in the past few years and the future, the sensitivity forecast of profits is carried out, and finally the performance forecast range of the company in the next few years is obtained. Finally, the forecast data of each business unit are added together to get the performance forecast of the company in the next few years. The prospect of these things is just the beginning, and it will eventually start from the aspects I just mentioned, so that you can basically ensure that your calculations and predictions are correct, so you don't have to spend too much thought on it. The key situation still depends on which aspects you are talking about.

How to calculate the five-year average growth rate of a company's economic income? In the process of our investment, we can actually calculate and analyze these aspects, namely, operating income forecast, gross profit and gross profit, total profit and net profit, and sensitivity analysis. None of these things are difficult, even simple.