Forecast vs prior yr

Question

What is the purpose of looking at forecast vs prior yr?

Answer 1

Hello Richard,

There are several reasons for looking at a forecast and comparing it against prior year data. The main reason I would say is that prior year data helps us determine if our forecast is within the realm of reasonable. Remember, a forecast a is prediction based upon past experience and our best guess based upon what the Company has previously done. Another way to look at it is this: We look at the past and compare it with our forecast to see if the trend that has been established from prior data lines up with our forecast.