financial-projections

Vocabulary Word

Definition

The term 'financial projections' refers to forecasts of a company's future financial performance. It's similar to a weather forecast, but instead of predicting rain, you're predicting profits, income, expenses, and cash flow.

Examples in Different Contexts

In business planning, 'financial projections' are essential. A CFO might say, 'Our financial projections for the next five years show a steady increase in revenue, assuming market conditions remain favorable.'

Practice Scenarios

Business

Scenario:

We are looking at an exciting phase of growth for the company. It would be ideal if we could have a comprehensive financial outlook before we decide our strategy.

Response:

I agree, for successful growth planning, it's critical we review our financial projections and then determine our business strategy.

Tech

Scenario:

Our development team has proposed an upgrade to our existing software. It's important to understand the financial implications before making a decision.

Response:

Absolutely, we should review the financial projections for this project to assess its feasibility before we commit our resources.