What is financial model

Question

Accepted Answer

A financial model is a tool used to forecast a company's future financial performance based on historical data and assumptions.

Financial models are used to make informed business decisions and evaluate the impact of different scenarios.
They typically include income statements, balance sheets, and cash flow statements.
Assumptions such as revenue growth rates, expenses, and capital expenditures are key inputs to a financial model.
Sensitivity analysis can be performed to assess the impact of changing assumptions on the financial outcomes.
Examples of financial models include discounted cash flow (DCF) models, merger and acquisition (M&A) models, and budgeting models.

Accepted Answer

A financial model is a mathematical representation of a company's financial performance, used to forecast future financial outcomes, make business decisions, and evaluate different scenarios.                    
 *income statement 
*Balance sheet 
*Cash flow 
*Key matrix

What is financial model

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