What are forecasted figures primarily used for in financial analysis?

Forecasted figures play a crucial role in financial analysis as they help organizations create plans and strategies based on anticipated future performance. These figures allow businesses to project their financial position, allocate resources effectively, and prepare for potential challenges or opportunities that may arise. By utilizing forecasted values, stakeholders can establish budgets, set targets, and make informed decisions that align with their long-term strategic goals.

In contrast, historical data focuses on past performance and may not accurately predict future trends, while market trends provide insights into industry conditions but do not directly inform internal financial planning. Revenue growth is a critical measure but is a result of effective planning and forecasting rather than the primary purpose of forecasted figures. Thus, forecasting is primarily concerned with planning values, enabling organizations to create a roadmap for future success based on informed projections.