What is financial modeling?
A financial model is a summary of a company’s financial performance that’s used to predict its future. The model can help a company predict a range of outcomes, such as quarterly earnings, monthly revenue, or annual net income.
Although models are useful for predicting performance, they can also be used for a wide variety of business functions. Models are frequently used to determine if it’s profitable to invest in another company, lend money to it, or launch a partnership with it.