Modeling Is Important

Why is Financial Modeling Important?

For corporate executives, investors, and anyone working on mergers, acquisitions, takeovers, and capital raising, there are many reasons why financial modeling is extremely important. The main reason it’s very important is that millions and sometimes, billions of dollars are on the line with these major corporate transactions, and much of the decision-making comes down to the analysis produced in the model.


Modeling is Important

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 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

Analyst Certification Program

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