Financial term for low point in my forecast

What is a bottom-up financial forecast?

Bottom-up forecasting is a method of estimating a company’s future performance by starting with low-level company data and working “up” to revenue. Revenue (also referred to as Sales or Income). This approach starts with detailed customer or product information and then broadens up to revenue.

What are the three types of forecasting?

There are three basic types—qualitative techniques, time series analysis and projection, and causal models.

What is the opposite of ex-ante?

Ex-post is another word for actual returns and is Latin for “after the fact.” The use of historical returns has customarily been the most well-known approach to forecast the probability of incurring a loss on investment on any given day. Ex-post is the opposite of ex-ante, which means “before the event.”

What is top down and bottom-up forecasting?

Top-down forecasting offers a prediction of how much market share is needed to be profitable, while bottom-up forecasting offers an understanding of which business activities have the biggest impact on financial performance.

What is bottom-up in finance?

Quite simply, bottom-up investing focuses on individual securities rather than on the overall movements in the securities market or the prospects of particular industries. The bottom-up approach assumes that individual companies can do well even in an industry that is not performing very well.

What does the term bottom-up mean?

Definition of bottom-up

: progressing upward from the lowest levels (as of a stratified organization or system) bottom-up management.

What is level in forecasting?

Level: The average value in the series. Trend: The increasing or decreasing value in the series. Seasonality: The repeating short-term cycle in the series.

What are the four basic types of forecasting?

Four common types of forecasting models

Time series model.
Econometric model.
Judgmental forecasting model.
The Delphi method.

What are the five methods of forecasting?

Simple Moving Average (SMA) Exponential Smoothing (SES) Autoregressive Integration Moving Average (ARIMA) Neural Network (NN)

What is top-down financial forecasting?

Top-down forecasting is a method of estimating a company’s future performance by starting with high-level market data and working “down” to revenue. This approach starts with the big picture and then narrows in on a specific company.

What is a top-down financial model?

Top-down forecasting is a method used for estimating future revenues for a company starting at the very “top”, with high-level or “macro-level” market data. This can be done by starting with the total addressable market (TAM) size in dollars (or another preferred currency) for a company.

What is zero based forecasting?

ZERO-BASE FORECASTING—Uses the organization’s current level of employment as the startingpoint for determining future staffing needs.

How do you introduce a zero-based budget?

The five steps of zero-based budgeting

Start. Begin at ground zero. …
Evaluate. Evaluate every cost area. …
Justify. Account for all components of the budget. …
Streamline. Determine what activities should be performed and how. …
Execute. Roll out comprehensive planning and execution processes.

What is zero-based budgeting in simple words?

Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period. The process of zero-based budgeting starts from a “zero base,” and every function within an organization is analyzed for its needs and costs.

What is a zero-based budget in business?

Zero-based budgeting (ZBB) is a budgeting approach that involves developing a new budget from scratch every time (i.e., starting from “zero”), versus starting with the previous period’s budget and adjusting it as needed.

What are the 3 types of budgets?

Budget could be of three types – a balanced budget, surplus budget, and deficit budget.

What is a variance analysis?

Definition: Variance analysis is the study of deviations of actual behaviour versus forecasted or planned behaviour in budgeting or management accounting. This is essentially concerned with how the difference of actual and planned behaviours indicates how business performance is being impacted.

What are the types of budgeting?

The Four Main Types of Budgets and Budgeting Methods

Incremental budgeting. …
Activity-based budgeting. …
Value proposition budgeting. …
Zero-based budgeting. …
Imposed budgeting. …
Negotiated budgeting. …
Participative budgeting.

What are the 5 types of budgets?

Five Types of Budgets for Businesses

Master Budget. A master budget is an amalgamation of a company’s separate budgets that is intended to provide a comprehensive view of its financial activities and health. …
Cash Flow Budget. …
Operating Budget. …
Static Budget. …
Financial Budget.

What are the 7 types of budgeting?

The 7 different types of budgeting used by companies are strategic plan budget, cash budget, master budget, labor budget, capital budget, financial budget, operating budget.

What are the 5 categories that are involved in budgeting?

Below is an easy way to start budgeting with only these five categories and percentages of your income:

Savings (Pay Yourself First. …
Housing Costs (No more than 35%) …
Transportation (No more than 15%) …
Other Living Expenses (No more than 25%) …
Consumer Debt (At least 15% until paid off)

What are the four walls of budgeting?

Dave Ramsey, a renowned financial expert and host of a popular talk radio program, refers to these basic necessities as the four walls.

Food. Feed your family. …
Shelter. Pay your house payment or rent and keep the lights on. …
Transportation. You need to keep the car moving so you can get to work and make some money. …
Clothing.

How do you evaluate budget performance?

How to Evaluate Your Budget

Compare Actual vs. Planned Spending.
Assess New Income and Expenses.
Review Your Financial Goals.
Modify Your Budget to Meet Your Needs.
Identify and Plug Budget Leaks.
Review Your Budget Monthly and Annually.

What are the four stages of the budget process?

Budgeting for the national government involves four (4) distinct processes or phases : budget preparation, budget authorization, budget execution and accountability. While distinctly separate, these processes overlap in the implementation during a budget year.

How do I determine my current financial situation?

5 Simple Steps To Evaluate Your Financial Health

Determine your net worth, and see which way it’s trending.
Calculate your debt-to-income ratio (and try not to scream)
Evaluate your housing situation.
Find out where your money is going (and if you’re spending more than you should)

What is financial management cycle?

The Financial Management Cycle includes four phases that are essential for the overall evaluation of the financial management of any firm. The four phases are Planning, Budgeting, Managing Operations, and Annual Reporting.