The Forecasting Analysis helps a company predict future income, which is useful when determining a company's overall financial health.

This particular forecast has three different outcomes at a 95% confidence level. The confidence level of the forecast analysis can be changed when making the spreadsheet. It is also possible to have multiple sheets in this analysis, each with a different confidence level. All of this is up to the client's discretion.

The solid blue line represents the actual sales. The dotted blue line represents the baseline prediction. The green dotted line represents the best-case scenario. The red dotted line represents the worst-case scenario. The dotted blue line takes your sales data along with the dates and generates a formula that predicts your company's future with as much precision as possible. (Confidence level can go no higher than 99.99%)

Your Y-axis is determined by the dates provided in your data, along with your predetermined forecast start and end dates. You can choose how far into the future you want your prediction to go, which in turn dictates the length of your X axis. Your x-axis will start with the dates provided in your data and stop at the forecast end date you chose.

It is best to have your financial report in months, quarters, or years. Dates without consistency may throw off the formula's predictions. It is best to align the start of your prediction with the end of your financial report for optimal predictions.

There is a blue table to the left of your forecasting analysis chart that provides the same information as the financial forecast line graph. However, the blue table will show three sets of numbers for every predicted month, quarter, or year. The forecast(sales) columns represent the dotted blue line. The red dotted line represents the lower confidence (sales) column. The upper confidence(sales) column represents the dotted green line.