Financial modeling is a representation in numbers of all aspects of a firm’s operations. The models are used as decision-making tools within a firm. The financial analyst uses them to calculate the costs and figure out the profit of a new project. The tool is used to check the impact of a future event and business decisions regarding the company’s finances. Every company every startup needs a financial model. The models are used for multiple reasons, such as estimating the value of a business or to compare businesses with their competitors in the industry.
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