What is profit forecast? What are the basic methods of profit forecasting?

Profit forecasting is a process in which enterprises estimate and forecast future profits according to historical data, market trends, cost changes and other factors.

Profit forecast is an important basis for enterprises to make business plans, evaluate business risks, prepare budgets and formulate strategies, and it is an indispensable part of enterprise business decisions.

The basic methods of profit forecasting include

1. Historical method: Use historical data to analyze past data and predict future sales, costs, expenses and profit levels.

2. Benchmark comparison method: compare the company's financial data with other companies in the same industry, understand the effectiveness of strategies such as market sales price through comparison, and make adjustments and budgets according to their own conditions.

3. Empirical method: it is a relatively simple forecasting method based on experience and intuition, previous sales and profit data, market trends, product or service innovation and other factors.

4. Statistical methods: According to statistical principles, select appropriate statistical models, such as regression analysis and time series analysis. And predict the historical data as a sample.

5. Simulation method: The prediction model of the enterprise is established by using the computer system, and the profit forecast for a period of time in the future is obtained through the simulation and prediction of various factors.