ABC company is doing the fastener and hardware trading business in Malaysia. Please prepare a Sales Growth forecast for 2023-2025 for ABC companies based on the financial ratio below:

[Note: Your discussion should have the proper citation of sources.]

Please answer with not more than two thousand words.

ABC Sales Forecast 2023

December of Previous Year 2022: RM1,402,822.69

Month Sales Forecast (RM) Percent Growth

January 100000 0%

February 100000 0%

March 120000 20%

April 120000 20%

May 120000 20%

June 120000 20%

July 150000 25%

August 150000 25%

September 150000 25%

October 150000 25%

November 150000 25%

December 150000 25%

Sales Growth forecast for 2023-2025

Financial analysis

Ratios 2022 2021 Changes

Current ratio 1.70 0.99 0.71

Quick ratio 1.27 0.67 0.6

Average collection period 102 Days 128 Days (26 Days)

Average payment period 92 Days 107 Days (15 Days)

Total asset turnover 1.63 1.5 0.13

Debt ratio 0.5 0.84 (0.34%)

Gross profit margin 0.51 or 51% 0.49 or 49% 0.02%

Return on total assets 0.305 or 30.5% 1.22 or 122% (91.5%)

Return on equity 0.947 or 94.7% 1.77 or 177 % (82.3%)

Sales Growth Rate

2018 830,785.22 N/A

2019 2,246,157.41 170%

2020 1,606,923.73 -28.46%

2021 1,466,744.85 -8.72%

2022 1,402,822.69 -4.36%

Sales Growth Rate year 2023: -4.36%

Sales Growth Rate over last year (4 years): 32.115%