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Modeling Used For

What Is Financial Modeling Used For?

Financial modeling is used for internal company purposes such as financial planning, budgeting, and analysis, as well as external corporate purposes such as executing mergers, acquisitions, capital raising, and making investment decisions. The models are used to help managers and executives make decisions, assess opportunities, and evaluate alternatives in a corporate finance setting.

 

Financial Modeling Used For

Additional Questions and Answers

CFI is the official global provider of financial modeling and valuation analyst FMVA Designation. CFI’s mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way.

In order to become a great financial analyst, below are some additional questions and answers for you to explore further:

  • What is are the types of financial models?
  • What is sensitivity analysis?
  • What is bookkeeping?
  • What are the most common valuation methods?

Example Excel Model

Below is a screenshot from one of CFI’s online analyst training and certification courses, offered 100% online.

To learn How to Build an Excel Model step-by-step, click on the image below.

financial modeling questions and answers

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