From the course: SQL for Finance Professionals
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Forecasting revenue trends - SQL Tutorial
From the course: SQL for Finance Professionals
Forecasting revenue trends
- [Instructor] Revenue is the very first line item you'll see in a company's income statement and is understandably one of the most important metrics the company will want to keep tabs on because it answers the question, how much money are we making? Given this, it makes sense that forecasting revenue is a critical exercise for any business to be able to plan for strategic decisions in the future. Forecasting revenue is just one specific application of the predictive models we just learned about. There are four revenue projection methods we'll be covering in this video. Straight line, moving average, linear regression and multiple regression. In the straight line method, which is probably the most straightforward and thus most popularly used method in the industry, the analyst will look at historical revenue growth rates and determine a reasonable rate that will hold in perpetuity. This rate is also informed by growth…
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