Today, if you Google the term “Financial Modelling” you will get millions of hits.
So, what is a Financial Model?
Financial Model is a mathematical model designed to represent the performance of a firm’s financial asset. Model is basically used to calculate, forecast, or estimate financial numbers. Financial Model is a spreadsheet which has Input, Output Sheet and is dynamic in nature. Financial Modelling relates to accounting and corporate finance applications usually involve the preparation of detailed company-specific models used for Decision-making and financial analysis purposes, Can be used for getting insight into financials.