Take Important Business Decisions Using Financial Modeling

• Financial Modeling
• Dec 21, 2018

Financial modeling is an important element which helps to make major business decisions in corporate world. Financial models are great tools to execute choices in business to get perfect solutions.

Financial models are tools built in excel that are used to forecast a business’ financial performance into the future. The forecast is typically based on the company’s historical performance, assumptions about the future and requires preparing an income statement, balance sheet, cash flow statement, etc.

Uses of financial modeling:

1.       Financial models can help you find out the grade of risk associated with implementing certain decisions

2.       Financial models can be utilized to devise an effective financial statement that reflects the finances and operations of the company

3.       Financial models can help online internet business make quick decisions more confidently

4.       Financial modeling acts as an important tool which enables business ideas and risks to be estimated in a cost effective way

5.       Financial modeling is an action of creating attractive representation of the financial situation of a company

6.       Financial models are aimed at representing the economic performance of a business entity

Decisions that can be made using Financial Modeling

·         To raise capital such as debt and equity

·         Making assets and business acquisitions

·         To analyse mergers, acquisitions and other corporate development opportunities

·         Growing the business organically like opening new stores, entering new markets, etc.

·         Selling assets and business units

·         Budgeting and forecasting

·         Capital allocation and prioritising the projects

·         The ability to value a business or a company

Various sectors that uses financial modeling

Ø  Investment banks

Ø  Credit rating agencies

Ø  Equity research

Ø  Mutual funds

Ø  Financial KPOs

Ø  Project finance companies

For expert financial modeling services, contact us at contact@jazaafinancials.com we have an expert team to help you make business decisions.

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