Forums › OBU Forums › OBU Topic 5
- This topic has 2 replies, 3 voices, and was last updated 2 years ago by trephena.
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- August 11, 2022 at 7:31 am #662875
Hi,
I am planning to go for topic 5. I just have a query.what does organization which has performed EXCEPTIONALLY WELL OVER A THREE-YEAR PERIOD with a critical analysis of the reasons for its success.
Can I choose a company that has performed well in 2019, a little worse in 2020 due to covid and other factors, and way too better in 2021 on the bases of Financials.
Will this be acceptable?
ThanksAugust 20, 2022 at 11:44 pm #663809I have this same question. Please help. Almost all companies have been affected disproportionately by the pandemic either by increased revenue in 2020 and decreased revenue in 2021 or decreased revenue in 2020 and increased in 2021.
August 21, 2022 at 6:35 pm #663859The focus in the title is EXCEPTIONALLY WELL. Of course many businesses were affected by Covid 19 [although in the UK supermarkets did very well] . I think the way to approach this would be do some regression analysis and see what the company you have in mind achieved in 2019 and was expected to achieve in 2020 and 2021. Obviously 2020 and to a certain extent 2021 may have been affected [depending upon the industry section]. Possibly also bring in 2022 Q1 & Q2 and plot these. By replotting the regression analysis trend line can you see that it will take a year or two before it will get back to original 2021 forecast? If so you can conclude that the main reason that there was a set back in 2020 was the Pandemic and that now the company is again on an upward trajectory and so still can be considered to have performed ‘exceptionally well’. By using a comparator that has not performed so well and does not show evidence of recovery would underline this concept of ‘exceptional performance’.
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