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A projection of a company's financial health for a certain period of time, such as a year. A forward-looking statement makes certain assumptions; for example, management may assume that sales will increase or decrease by a certain amount based on current trends. As a result, forward-looking statements are subject to revision, as reality may not match the assumptions. A forward-looking statement is nonetheless useful for making certain decisions about a company's future, such as whether or not to expand operations.
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Discussions of these statements typically include words such as estimate, anticipate, project, and believe.