Absolute Revenue Forecast Error

Are your revenues foreseeable?

Description

Absolute revenue forecasting error is a metric that indicates how variable your revenues are. Since the metric does not account for the direction of the change, this metric should be used more to assess the risk level’ in revenues and not whether or not the revenue targets are being met.

Motivation

The discrepancy between the forecasted revenues in either direction is a telling sign of business uncertainty. Being able to maximize the foreseeability of revenues makes running a business much more manageable.

Trend chart

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What Measurements are used in each Metric

A Formula to calculate the Metric values

A Chart showing the last/current Metric value

Metric categorization

How is Metric tied to the Key Result of the OKR methodology

Goal/Objective examples

Relationships to other Metrics

Extended description

Examples

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