Financial Models in Excel: Explained

Posted by Wilbur Omar Chua on September 2nd, 2021

What are financial models? Financial models are models which forecast business performance based on a set of assumptions. Financial models are built to show profitability, cash flow, etc. for entrepreneurs or key decision makers to easily understand how their decisions may impact the business being discussed. Key financial metrics such as IRR, NPV, and payback period will be discussed as well. For those key decision makers, they also rely on the ability of the person who builds financial models in the assumptions that they place. 

In this article, we will discuss what are financial models, who builds financial models, and show you Financial Models in Excel. We will also discuss how to build these financial models on your own so that you can appreciate the work done by the professionals and also become one as well.