Meaning
Financial modelling is the process of creating a mathematical model, often in a spreadsheet, to represent the financial performance of a business, project, or asset.Core Purpose
Its core purpose is to forecast financial outcomes, aid decision-making, and perform analysis such as valuation, budgeting, or scenario planning.Key Elements
Key elements typically include inputs (assumptions, historical data), calculations (formulas), and outputs (financial statements, key performance indicators).Common Use Cases
Common use cases involve business valuation, capital budgeting, mergers & acquisitions analysis, and strategic planning for various business initiatives.Author
