Financial Modeling Examples – Using a Financial Model Templateby Jason Varner Financial Projections Template
Financial modeling is the process of creating a numerical report to either evaluate a business’ performance by applying different assumptions resulting with expected projections. The accuracy of the report depends on how honest and realistic the estimations given are since the one creating the report has the control to manipulate all the inputs and estimated values or ratios needed in the model.
To create a financial model, you can either build it from scratch or use a financial model template that you can acquire easily nowadays. Though financial modeling is not something you can do from the get go with just the financial model template, it is, nonetheless, an admirable effort to try and learn how to create a financial model on your own. After all, it is very expensive to hire a professional to create one from scratch, it is better to take advantage of a ready-made financial model template and start from there.
You can then use the financial model template for the following use cases:
• Financial Analysis – to better understand the economics of your business and its value drivers
• Forecasting – to create a financial plan or a budget plan based on future projections
• KPIs – to evaluate the business by figuring out the key metrics which will determine the break-even point, repayment period, etc.
• Scenarios – to provide different financial assumptions simulating different circumstances that will affect the growth of the business
• Valuation – to evaluate the value of an asset or a business
• Mergers & Acquisitions – selling or buying a business or an asset
• Investment and Capital Allocation Decisions – to create a solid financial analysis resulting in an enhanced and rational economic decision for investing and allocating capital to further develop the business
• Fundraising – to raise financing, equity, funding, etc.
There are many more ways that you can use a financial model for which only further proves that a financial model is critical not just in any kind of business but to an individual too. To learn more about how to create a financial model, you can check out different Financial Modeling Examples at eFinancialModels, where you can acquire the financial model templates which were made by financial modelers with extensive industry know-how. Thus, you won’t have to use a lot of time to research multiple components to start creating a financial model.
Most of the financial modeling examples given are usually the most in demand in the market and industries whether for personal uses or for business purposes. The financial modeling examples are also industry-specific, so you can choose which you prefer as your starting template for the model. No more spending too much time figuring things out on your own, take advantage of the available resources around you and save time and money in return.
Created on Feb 4th 2019 01:48. Viewed 535 times.
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