Actuals refer to commodities that can be purchased and used directly, as well as to expenses or receipts that have actually occurred, instead of budgeted or projected figures.
A business plan is a comprehensive guide that outlines a company's goals, strategies, and financial projections, essential for both new ventures and established businesses seeking capital or strategic direction.
A financial projection model that predicts sharply increasing earnings following a period of modest growth, visually resembling a hockey stick when plotted on a graph.
A post-completion audit involves comparing the actual cash flows with the forecast cash flows for an investment to assess the validity of the initial financial projections and ultimately improve future investment decisions.
Pro Forma refers to the presentation of financial data that adheres to a specific format and often includes hypothetical or projected numbers to provide a basis for analysis and planning.
Pro-forma financial statements are financial reports prepared in advance, containing estimates and projections to inform and guide decision-making.
A projected financial statement, often known as a pro forma financial statement, is a financial report that outlines estimates of future revenues, expenses, and profits based on historical data, expected market trends, and planned business activities.
Reversionary value refers to the estimated value of a property at the end of a predefined period of time, typically used in real estate and financial projections.
A method used in decision making to evaluate the impact of variations in key variables on projected outcomes, helping to identify the degree of risk associated with a decision.
In a discounted cash flow (DCF) calculation, a standard cash flow pattern is characterized by an initial cash outflow followed by subsequent cash inflows, with no net cash outflows in subsequent years. This pattern, though useful in projections, is relatively rare in practice.
