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.
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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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