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Financial Analysis and Forecast
The examination of a company's financial statements and projections to assess its financial health and predict future performance.
Implications
The combined process of evaluating current financial performance and projecting future financial outcomes, often used to guide strategic planning, investment decisions, and resource allocation.
Example
Example: A startup prepares a financial analysis and forecast for potential investors, showing its current financial health and projected growth based on market trends, revenue streams, and planned expansions.
Related Terms
Different from standalone financial analysis, which focuses on historical data, this approach integrates forecasting to provide a forward-looking perspective on financial performance.
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