AFP Momentum Index: August 2021

The AFP Momentum Index survey was developed by members of the AFP FP&A Advisory Council, finance practitioners representing various industries and companies. It is administered by the Research Department of AFP, and the data is from a survey of independent FP&A practitioners. The Index has a single composite score based on three individual sub-scores that will be tracked over time. The sub-scores are as follows:

1. Actual Most Recent Quarter (MRQ): how did your ACTUAL RESULTS compare to the most recent forecast? Data is gathered on 10 elements.
2. Outlook: how has your company's OUTLOOK changed for the subsequent six months? Data is gathered on the same 10 elements.
3. Risk: what is your company's RISK OUTLOOK for the next six months? Data is gathered across six risk categories.

AFP has launched the Momentum Index, a quarterly survey designed to take the pulse of the business community as seen from the point of view of the FP&A department. The survey was developed by members of the AFP FP&A Advisory Council.

Reading the results: This is a momentum survey, where the resulting number indicates the direction relative to past readings. A positive or increasing composite number indicates business growth; a negative or declining number indicates a diminished economic performance.

Survey demographics: The survey demographics are one of the unique attributes of the AFP community. For example, the 201 responses received illustrate the diversity of the AFP community in the following ways:

• Enterprise size: 26% had revenues of more than $1B, 26% had revenues of $100MM-$1B, and 48% had revenues below $100MM.
• Ownership structure 27% publicly owned, 30% privately held, 32% privately held/private equity, and 11% government/non-profit.
• Industry: 17 different industries had representation of 2% or more.
• Seniority: 67% of respondents were directors, managers or analysts; 33% were VPs or CFOs.

Strength of the Indicator: AFP’s vision for the FP&A Indicator is long-term, and we expect its indicative strength will grow over subsequent quarters.

Timing of the survey: Future editions of the FP&A Indicator will be collected and reported on the following schedule:

Participation: If you would like to be included in the FP&A Indicator survey, please email the AFP Research Department at [email protected].