what is Financial Forecasting
Financial forecasting is the process of estimating future financialperformance. The projected financial performance of a business is measured byusing pro-forma financial statements as well as other indicators suchas trend analysis, ratio analysis, and return on equity. Forecastingoften takes a higher-level viewpoint than the related activityof budgeting. In broader terms, forecasting can also refer to estimates ofbroad economic activity in a country, industry, or financial area. Forinstance, analysts and economists release forecasts of where interest rates orstock market prices might go in the future.