financial forecasts

What Are the Common Techniques Used in Financial Forecasting?

Several techniques are commonly used in financial forecasting:
Qualitative Methods: These include expert judgment and market research, often used when historical data is limited.
Quantitative Methods: These include statistical models and historical data analysis, suitable for data-rich environments.
Scenario Analysis: This involves creating different financial projections based on various scenarios to anticipate potential outcomes.
Rolling Forecasts: These are continuously updated forecasts that provide a more dynamic and flexible planning tool.

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