Long-Term Financial Forecasting
Chapter 4 provided an introductory overview of financial statement analysis. The focus of Chapter 4 was historical—meaning that financial statements were used to analyze how profitable, solvent, and liquid a company had been in the past. The focus of this chapter is forward looking—meaning that it examines how accounting information is used to forecast a company’s potential financial performance in the future.
Financial forecasting can cover both short-term time horizons (such as months or quarters) and long-term time horizons that span multiple years. Short-term forecasting (often called operational budgeting) is primarily a managerial activity performed by internal users of financial information. Short-term ...
Get Using Accounting and Financial Information now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
