Measures the accuracy of a company’s financial projections.
What it Measures ?
How accurate were our revenue predictions.
Relevant StakeHolders
CFO, FP&A Team
Why it Matters ?
Improves forecast accuracy.
In-depth Use Case / Real-world Example
Financial Forecast Accuracy evaluates how closely actual results align with forecasted figures. For example, if a company predicted ₹1,000,000 in revenue but achieved ₹950,000, the accuracy rate is 95%. Accurate forecasting is vital for strategic planning, resource allocation, and risk management.
Sample Formula
(Forecasted Revenue - Actual Revenue) / Forecasted Revenue