How Does Code Produces Correct Value

I have a simple WORKING Factorial program code but I don't understand how it works.Here is code snippet

public class Factorial{
public static void main(String[] args){
long limit = 5;
//long factorial = 1;
 
[code]....

My question is - every time in a given FOR loop if Factorial value (highlighted and bold above) is initialized / reset to "long factorial = 1" then how does code produces correct values? Because correct values can be produced only if interim factorial results are saved/stored and used next time to multiply with "factor" value.

Here instead of retaining it, we initialize or reset to 1 so every time you multiply by 1 and it should produce 1! = 1, 2! = 2, 3! = 3, 4! = 4 etc which would be an incorrect result.