What information is represented on a financial model?

What information is represented on a financial model?

A financial model represents a company’s current financial position and provides information to help predict future performance. Presented in the model are the company's past, present, and estimated future financials. This allows the company to see how much it is worth and how financially stable it is, going forward. This helps investors decide whether it is worth investing in the company and helps the company make future decisions as to when, where, and how to spend and limit cash. 

For more information on this topic, check out this article from our friends at Investopedia.

https://www.investopedia.com/terms/f/financialmodeling.asp#:~:text=Financial%20modeling%20is%20a%20representation%20in%20numbers%20of%20a%20company's,of%20a%20proposed%20new%20project.

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