Financial Forecast Accuracy
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Category:  
Analytical

Measures the accuracy of a company’s financial projections.

What it Measures ?

How accurate were our revenue predictions.

Relevant StakeHolders 

CFO, FP&A Team

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.

KPI Definition

Business Value

Movement Direction

Sample Formula

(Forecasted Revenue - Actual Revenue) / Forecasted Revenue

Should Aim For
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