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Which profitability model do you consider best for forecasting projects?

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Question added by Aanus Maqbool , Accountant - Financial Reporting , Falconpack ( Group )
Date Posted: 2016/11/23
abdullah malas
by abdullah malas , Freelance programming , FreeLancer

Financial

If your finances are changing, you can't use a historical model. For example, if you have just taken out a loan to finance expansion or if a key material for your production is suddenly increasing in price, your profitability will change. In that case you can rely on financial calculations to forecast profitability. You can calculate interest charges or increasing material costs and add them to expenditures while projecting increasing revenue due to higher sales. Your calculations allow you to estimate profits and forecast company profitability.

Feras Saleh
by Feras Saleh , , Head of Reporting and Cost Controlling , Branch of Fcc Aqualia S.A

Models are based on assumptions. So the first set would be revenues these would depend on the market economy and competition and management. The second set would be fixed expenses. Then comes variable expenses which would depend on revenue and excel spreadsheet analysis would capture these calculations to give an overall profitability forecast

 

also 

A historical A stable market and financial results that are changing slowly and predictably let me use historical data to forecast profitability. Financials We can calculate interest charges or increase material costs and add them to expenditures while projecting increasing revenue due to higher sales. Trends and Analytical model

 

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