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Why Financial Modeling is relevant ?
Financial modelling uses spreadsheet software, such as MS Excel, to create a statement that showcases the company’s past, present and possible future in numerical values. It helps companies collate their financial data, analyse the findings and make significant business decisions. It is a cost-effective method that evaluates potential ideas and estimates risks. 

It can also help create sustainable solutions to different monetary problems within the company. Most importantly, it drafts efficient financial statements that present the company’s fiscal health to the outside world. A vital skill when the business is looking at mergers and acquisitions, trying to raise capital or attracting new investors. 

Professionals who use financial models:

• Equity research analysts need to create effective statements that help them decide on a valuation
• Financial planners create models to help them make predictions about potential investments
• Investment bankers and advisors who are working on projects related to mergers and acquisitions or raising capital need investment modelling 
• Credit analysts need financial modelling methods to figure out potential loans

How to create financial models

• Start by collecting the company’s financial information between two specific dates.
• Record the date in a spreadsheet format 
• Make the required calculations as per the demands. You can work on the growth rate, margins, expenses, etc. 
• Analyse the findings to see what changes or modifications are needed going ahead 
• You can make predictions based on the data above