FINANCIAL MODELING

OVERVIEW
 INTRODUCTION
TO FINANCIAL MODELING

A financial model is simply a tool that is built in a

platform to forecast a business’s financial performance
into the future.

This is a mathematical model designed to represent the

performance of a financial asset or portfolio of a business,
project or any other investment.

89% 74% 53%

Type A Type B Type C
 USES OF FINANCIAL MODELING
(OUTPUTS OF A FINANCIAL MODEL)

RAISING BUDGETING VALUING A FINANCIAL

CAPITAL
CAPITAL AND BUSINESS STATEMENT
ALLOCATION
FORCASTING ANALYSIS

There are many other uses of financial modeling where financial model is used for decision making and
performing financial analysis, whether inside or outside of the organization.
.
 BUILDING A FINANCIAL MODEL
TOP 6 STEPS ARE INCLUDED

STUDYING
STARTING THE STARTING THE BUILDING THE BUILDING THE BUILDING
HISTORICAL
INCOME BALANCE SUPPORTING CASH FLOW CHARTS AND
RESULTS AND
STATEMENT SHEET SCHEDULES STATEMENT GRAPHS
ASSUMPTIONS

(Every financial model (With the forecast (With the top of the (Before completing (With the income (After the certain
covers historical events assumptions in place income statement in the income statement and required analysis with
so, pulling up the we can calculate the place we can start to statement and balance sheet we can the help of clear
necessary information top of the income fill in the balance balance sheet we build the cash flow communication the
of a certain period is statement.) sheet) have to create a statement with the most effective way of
important.) schedule for fixed reconciliation showing a financial
assets for debt and method) model is through charts
CARRERS AND JOBS RELATED TO FINANCIAL MODELING
CONCLUSION
TO FINANCIAL MODELING

Financial modeling is used for different purposes

based on the customer and business needs. It is
made on assumptions learnt from the historical
events and the ability to predict the future which
helps in making decisions.

Mainly used for reporting, analyzing, valuation and

forecasting.

54% 85% 35%

Type A Type B Type C
 CLOSING

FINANCIAL MODELING
THANK YOU