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Overview of Financial Modeling - Company Finance Model Concept

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  Financial modeling refers to the conceptual representations of a company's financial statements. The advantage of creating these models is that it helps decision-makers to make decisions based on the company's finances.  Financial modeling is a broad term that can mean different things to different people, although it usually refers to accounting and corporate finance applications or quantitative finance applications. Creating financial models is one of the most complex tasks. It is hard to understand the nature of relationships between various financial variables that are culminated in financial statements.  A financial model allows a business to simulate its revenues and expenses in different scenarios. Financial models are frequently used by companies when considering decisions like- launching a new product line, acquiring a competitor. The most effective financial models include a set of fundamental assumptions. The increase or decrease in gross in the most recent q...
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Financial modelling - Need to Know Lease adjustment

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Financial modelling is an art to represent financials of companies in meaningful manner. It helps to analysis company performance based on various factors such as profitability, liquidity analysis, cost benefit analysis. It also use to project future cash flow of the company and valuing company. In the process of valuation lease play an important part, today we are discussing that. In financial modeling training, we explain how to adjust lease in Enterprise value calculation. A lease is an authorized agreement in which the owner of an asset rent to a lessee. We examine long-term leases in which the lessee lives with the asset till the term of the agreement.  In financial terms, the leases are considered as alternatives to purchasing an asset with debt, and leases act as an income for the lessee.  Regardless of how the asset is held, the operating inflows and outflows from the equipment are unaffected by its ownership. The owner handles the responsibility for maintaining the eq...
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