Uploaded on Aug 31, 2022
Financial Modeling is the task performed by the financial experts by building the abstract representation of the financial decisions while working on the situations. Financial modeling is a mathematical model such as the computer simulation, designed to provide the performance of the financial asset in any form of financial investment
Financial Modeling and Excel Training
Financial Modeling and Excel Training
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Financial Modeling is the task performed by the financial experts by building
the abstract representation of the financial decisions while working on the
situations. Financial modeling is a mathematical model such as the
computer simulation, designed to provide the performance of the financial
asset in any form of financial investment. A financial model is set of
assumptions and predictions about the company's future conditions that
drives the projection of revenue, earnings, cash flows and balance sheets.
Financial Modeling is a general term which is completely different for the
different users. In Business Schools of the United States, financial modeling
means the development of the mathematical model while using the
complex algorithms which is associated with the complex algorithms.
Why do we use excel in financial modeling?
Forecasting about the company's financial future is really difficult and
complex task. Every business is unique and it required a different set of
assumptions and calculations that are derived from the past records.
Microsoft Excel is an inseparable part of Six Sigma as it is most flexible and
customizable according to the records and the data.
Sometimes software could be too rigid to handle and don't let you
customize your preferences and records according to your
requirements.
Objective of Financial Modeling
The major objective of the financial model is to let clients know about the
benefit of the foreign investments. It includes the cost of doing business in
the target country? what is the breakeven point? What might be the profit if
we work in the United States?
The importance of the financial modeling cannot be ignored as financial
models are the key elements of the major businesses. Financial model is
prepared by the organization
to know about the project finance, bidding for a project, evaluating the
targets, carrying out the monthly financial planning and conducting the
capital structure studies.
Qualitative review is very much necessary to determine the working of the
project and there should be an adoption of the logic and the model and it
will be appraised by the intended target audience.
Characteristics of Good Financial
Model A good financial model is
Uses the transparent design
and easy to understand
It is reliable and uses the control check on every level to determine
the errors on every level
It is easy to use as it can be more productive for analysis rather than
struggling to produce simple results
Six Sigma focuses on the key issues so that no one case
waste time in development of the unproductive items
MindCypress will help you with the training. Contact us today!
Resource: https://blog.mindcypress.com/p/financial-modeling-
and-excel-training
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