A financial model is a quantified representation of the present and future financial condition of an
organization. In other words, it is the presentation of the company's income, expenses, and cash flows
through a spreadsheet. Normally, it is made using a spreadsheet application like Excel. These models
are really helpful to many stakeholders such as CFOs and financial analysts who use them for budget
projections, investors make analyses to estimate the possibility of a business, and managers rely on
them when making decisions concerning operations. As with any model building, it is an art and
science that requires detail attention, a clear view of financial statements, and an acumen for finding
critical assumptions.

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