Reference no: EM133558500

Business Analytics and Data Visualisation

Video Presentation

Revenue growth holds a vital position for businesses, regardless of their size. It stands as a critical barometer of a company's financial health and accomplishments, often laying the groundwork for forthcoming investments, expansions, and opportunities for growth. It can serve also as an indicator of a company's sales and marketing strategy effectiveness, as well as provide a basis for performance comparisons with its industry peers.

As a market analyst, you would like to explore the factors influencing a company's revenue generation and its growth potential. To embark on this inquiry, you have collected the following data from Capital IQ database for public companies belonging to the All Ordinaries Index.

The data is stored in the Excel file "Capital_IQ_data.xlsx".

• Total Revenue, 1 Yr Growth % [FY 2022]: the percentage of revenue growth over one year, from financial year 2021 to financial year 2022.
• Total Debt/Equity %: refer to the debt-to-equity ratio (D/E ratio). It is calculated by dividing a company's total debt by its total shareholder equity.
• Inventory Turnover: is determined by diving the cost of goods sold by the average inventory value over one year. The inventory turnover metric assesses the effectiveness that a company manages its inventory. A relatively low inventory turnover ratio could suggest sluggish sales or surplus inventory, whereas a higher ratio indicates robust sales but might also point to insufficient inventory management.
• Return on Equity: is a financial ratio that measures the performance of a company based on its shareholders' equity outstanding. It is determined by dividing net income by shareholders' equity. Return on Equity (ROE) serves as an indicator of a company's profitability and its effectiveness in generating earnings. A higher ROE signifies more effective management in generating income and growth through equity financing
• % Stock Price Change [1 Year]: is measured as the percentage change in a company stock price between financial year 2021 and financial year 2022.

Utilising the provided data, your task is to conduct a regression analysis to identify the factors that may influence how a company grow its revenue. This analysis will help address the following questions.
1. Which variable(s) significantly determine the company's revenue growth?
2. Are the errors of the regression independent?
3. Is the regression model useful?

Attachment:- Business Analytics and Data Visualisation.rar