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Competition, inflation, GPD, prices changes, Dividends/bond distribution strategy, and governmental decisions are the most significantly considerations that should be taken in the CFO'S account when it comes to evaluate and preparing the forecasted financial strategy for the next 5 to 10 years based on macroeconomic variables. Why? Because these elements are critical variables that could impact on corporate cash flow.

In addition to what have been mentioned in the other columns, the CFO focus on identification of relationships between market price variables shown in column 3 and how the results of these variables on cashflows were in previous years. By having a good insight & analysis market price variables such as exchange rates, interest rates and inflation rates that reflect changes in the macroeconomic environment, the organizations might be in suitable position that, depending on obtained outcomes, helps them to make future decisions during the upcoming period.

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Financial Management, Finance

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