Business & Financial Forecasting Flashcards

Business & Financial Forecasting Flashcards
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Debt Ratio
You can use this ratio to examine how a company utilizes debt. You can find this ratio with this equation: total liabilities / total assets .
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Return on Assets (ROA) Ratio
A profitability ratio that shows how successfully a company is making profits with its assets. The equation to find this ratio is as follows: net income / average total assets .
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Factors of Financial Forecasts

The quantity of goods expected to sell

The amount of money the sales will earn the company

The cost to produce the goods

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Financial Forecasting
Companies complete this when they try to predict their future income and expenses.
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8 cards in set

Flashcard Content Overview

Check out the flashcards contained in this set when you're ready to review the purpose of financial forecasting. You can go over the factors you need to consider when making a financial forecast. Important ratios used in financial forecasting, including debt ratio, price per earnings ratio, return on equity ratio and return on assets ratio will also be covered by these flashcards.

Additional Study

Take the opportunity to continue reviewing financial subjects by checking out some of these informative lessons:

Studying with Flashcards

This set of flashcards can help you get used to differentiating between different financial ratios. You'll be able to review the formulas used to find these ratios so that you're able to correctly answer any test questions that involve these calculations. These flashcards allow you to quiz yourself on the differences between various kinds of forecasting. Because this set can be viewed on your laptop or smartphone, you can practice going over these ratios at any time and at the locations most convenient for you.

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Back
Financial Forecasting
Companies complete this when they try to predict their future income and expenses.
Factors of Financial Forecasts

The quantity of goods expected to sell

The amount of money the sales will earn the company

The cost to produce the goods

Return on Assets (ROA) Ratio
A profitability ratio that shows how successfully a company is making profits with its assets. The equation to find this ratio is as follows: net income / average total assets .
Debt Ratio
You can use this ratio to examine how a company utilizes debt. You can find this ratio with this equation: total liabilities / total assets .
Return on Equity (ROE) Ratio
A ratio used to determine the return on stockholder investments. You can find this by using this equation: net income / average stockholders' equity.
Price per Earnings Ratio (P/E Ratio)
An investment ratio that an accountant can find using this equation: stock price / earnings per share.
Qualitative Forecasting
If you come up with predictions that aren't driven by numbers, you are engaging in this kind of forecasting.
Quantitative Forecast
A type of forecasting that looks at prediction made with numbers; some examples include the econometric method and indicator method

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