Four out of five of the world’s largest companies are unable to accurately forecast mid-term cash flow, according to a new study from The Hackett Group, Inc., its REL working capital division and the National Association of Corporate Treasurers (NACT).
The Hackett study found that only 22% of companies say they can forecast mid-term (two-three months out) operating cash flow to within 5% accuracy. Previous Hackett research also showed that only one in three companies can forecast earnings to within 5% accuracy, and less than half can make the same claim about sales forecasting. Source: Hackett Group – courtesy NACM
