Use Case

Forecasting Revenue

The actual revenue of an organisation will not necessarily be equal to its sales for many reasons including for example tax rebates, investment windfalls, sales of assets, donations, interest, money awarded through litigation.

Whilst the revenue generated from sales can be forecasted fairly straightforwardly, the total revenue might vary throughout the year for non-obvious reasons. With enough historical data of revenues and sales joined with internal and external factors such as the management of the organisation or the period of the year, Machine Learning models can map the relationship between those factors and an organisation's total revenue.

These forecasts can help businesses predict their total revenue on a monthly, quarterly or yearly basis which enables them to estimate the capital needed to operate for those periods and how to optimally allocate it. Moreover, the same modelling applied exclusively to the sales data will allow organisations to estimate and adjust their inventory levels in order to meet the demand.

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