Overview of Financial Modeling - Company Finance Model Concept
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...