
Financial Models
Financial models are tools used to represent a company's financial performance and future prospects. They use mathematical formulas and historical data to project revenues, expenses, profits, and cash flow. These models help businesses and investors make informed decisions by analyzing different scenarios, estimating valuation, and assessing risks. Think of them as detailed financial maps that guide strategic planning, investment analysis, and budgeting, providing a clearer picture of financial health and potential outcomes without the need for guesswork.