"Financial modeling is the task of building an abstract representation (a model) of a real-world financial situation."
The process of analyzing financial data to assess the financial health of an entity and using that data to develop financial models that provide insight into future operations and performance.
Financial Statements Analysis: Understanding and analyzing financial statements like balance sheets, income statements, and cash flow statements is essential to understanding company performance, stability, and making accurate financial analyses.
Ratios Analysis: Understanding the financial ratios that organizations use to measure performance and make informed decisions.
Forecasting: Financial forecasting includes methods for predicting financial events such as future cash flows, stock prices, or exchange rates.
Cost Analysis: This involves analyzing the costs of a product or service to determine whether it is profitable and can be produced in a sustainable way.
Investment Analysis: Understanding the types of investment and how to evaluate how investment returns will impact the financial performance of an organization.
Risk Analysis: Analyzing the potential risks associated with investments, operations or financing activities, and developing risk management strategies to mitigate those risks.
Financial Modeling: Constructing models to forecast, analyze and assess the financial impact of business decisions.
Business Valuation: Understanding different methods of valuing businesses to determine their worth.
Capital Budgeting: Analyzing investment opportunities and choosing the ones that will offer the greatest return and growth for an organization.
Public Financial Management: Understanding how government programs and policies are designed to promote economic growth and development.
Ratio analysis: This involves the computation and analysis of various accounting ratios to evaluate a company's financial performance.
Trend analysis: This type of analysis examines the company's financial data and compares it with historical data to determine changes, trends, and patterns over time.
Cash flow analysis: It analyses the inflows, outflows, and net movement of cash in a company over a period of time and can help to determine whether a company is generating sufficient cash to meet its financial obligations.
Discounted cash flow analysis: It helps to estimate the future cash flows of a company and then discounts them back to their present value to evaluate the attractiveness of an investment opportunity.
Sensitivity analysis: It measures the impact of variations in different financial variables (such as interest rates, exchange rates, and inflation) on a company's financial performance.
Scenario analysis: It creates alternate scenarios to evaluate the impact of specific changes on a company's financial performance.
Investment analysis: It analyses investment opportunities, evaluates risk, and establishes the expected return and risks associated with a specific investment or project.
Credit analysis: It assesses the creditworthiness of borrowers, evaluates the risks associated with lending, and determines the optimal terms and conditions for a loan.
Financial modeling: It creates a mathematical representation of the financial performance of a company to evaluate the impact of various financial decisions.
Variance analysis: It compares actual financial performance to budgeted performance to determine the reasons for variances and to evaluate past performance.
Capital Budgeting: This analysis evaluates long-term investment decisions made by an organization in terms of cost-benefit analysis, profitability, and financial risk.
Break-even analysis: It determines the volume of output required to cover fixed and variable costs of a company.
Investment portfolio analysis: It analyses the returns and risks of investments within a portfolio.
Valuation analysis: It calculates the value of an asset, either using historical data or future earnings estimates.
Cost-Benefit Analysis: It compares the benefits and costs of a proposal, project or investment to determine whether it is worth the expenditure.
Risk analysis: The analysis helps to determine the degree of risk associated with a particular financial alternative.
"This is a mathematical model designed to represent (a simplified version of) the performance of a financial asset or portfolio of a business, project, or any other investment."
"Financial modeling is understood to mean an exercise in either asset pricing or corporate finance, of a quantitative nature."
"It is about translating a set of hypotheses about the behavior of markets or agents into numerical predictions."
"'Financial modeling' is a general term that means different things to different users."
"The reference usually relates to accounting and corporate finance applications."
"The reference usually relates to quantitative finance applications."
"It is the task of building an abstract representation (a model) of a real-world financial situation."
"To represent (a simplified version of) the performance of a financial asset or portfolio."
"Financial modeling is understood to mean an exercise in either asset pricing or corporate finance, of a quantitative nature."
"Financial modeling is understood to mean an exercise in either asset pricing or corporate finance, of a quantitative nature."
"Numerical predictions."
"It is about translating a set hypotheses about the behavior of markets or agents into numerical predictions."
"'Financial modeling' is a general term that means different things to different users."
"The reference usually relates to accounting and corporate finance applications."
"The reference usually relates to quantitative finance applications."
"It is a mathematical model designed to represent (a simplified version of) the performance of a financial asset or portfolio."
"To represent (a simplified version of) the performance of a financial asset or portfolio."
"Financial modeling is the task of building an abstract representation (a model) of a real-world financial situation."
"It is about translating a set of hypotheses about the behavior of markets or agents into numerical predictions."