Financial modelling is the process by which a firm constructs a financial representation
of some, or all, aspects of the firm or given security. The model is usually characterized
by performing calculations and makes recommendations based on that information.
The model may also summarize particular events for the end user such as investment management returns or , or it may help estimate market direction
• Scenario planning and management decision making (“what is”; “what if”; “what has
to be done”)
• Capital budgeting.
• Financing plan.