Investopedia

Continue to Site »

Financial Operating Plan - FOP

Filed Under » ,
Dictionary Says

Definition of 'Financial Operating Plan - FOP'

A financial plan outlining the revenues and expenses over a period of time. A financial operating plan (FOP) uses past performances, incomes and expenses to forecast what to expect in the following years. It then incorporates past and recent trends into the planning so as to most accurately forecast what is to come. It will define goals for areas such as budgeting, sales, payroll, etc, as well as create a cash flow projection.
Investopedia Says

Investopedia explains 'Financial Operating Plan - FOP'

A good financial operating plan will need to be ammended and updated due to any extraordinary events relating to finances, as well as to see if it is still relevant to the current situation. If prepared and ammended accordingly, an FOP can be a useful tool in creating and managing the budget, improving control of management operations and ultimately creating profitability.

Articles Of Interest

  1.

    Earnings Guidance: Can It Accurately Predict The Future?

    Explore the controversies surrounding companies commenting on their forward-looking expectations.

  2. Great Expectations: Forecasting Sales Growth

    Predicting sales growth can be something of a black art, unless you ask the right questions.

  3. Forecasting Market Direction With Put/Call Ratios

    Options are not only trading instruments but also predictive tools that can help us gauge the feelings of traders.

  4. Earnings Forecasts: A Primer

    Learn how this key metric is calculated and how it is used to judge market performance.

  5. Strategies For Quarterly Earnings Season

    Breeze through consensus estimates like the biggest Wall Street forecasters.

  6. Projected Returns: Honing The Craft

    Find out how to forecast long-term returns on the three major asset classes.

  7. Introduction To Stationary And Non-Stationary Processes

    What to know about stationary and non-stationary processes before you try to model or forecast.

  8. Style Matters In Financial Modeling

    If you're looking to get a job as an analyst, you'll need to know how to work it.

  9. Discounted Cash Flow Analysis

    Find out how analysts determine the fair value of a company with this step-by-step tutorial and learn how to evaluate an investment's attractiveness for yourself.

  10. Stop Keeping Up With The Joneses - They're Broke

    Conspicuous consumption could be robbing you of future wealth.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center