"pro forma" (Latin)

by Craig Shrives

What does the Latin term pro forma mean?

"Pro forma" is a Latin term that is commonly used in business and financial contexts. It means "for the sake of form" or "as a formality." It refers to a statement, document, or financial projection that is prepared as an estimation or representation of what is expected or anticipated, often based on assumptions or hypothetical scenarios.

Examples in Sentences

Here are three example sentences:
  • The company provided a pro forma financial statement to give potential investors an idea of the expected future performance and financial position.
  • Before finalizing the budget, the team prepared a pro forma projection to assess the potential financial impact of different scenarios and variables.
  • In the business plan, the entrepreneurs included a pro forma cash flow statement to demonstrate the projected inflows and outflows of funds for the first three years of operation.
pro forma (meaning)

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