rahoitusmallinnuksen

Rahoitusmallinnus, known in English as financial modeling, is the process of creating a summary of a company's expenses and earnings in the form of a spreadsheet that can be used to calculate the financial impact of a business decision or event. It is a core component of corporate finance and investment banking.

The primary purpose of a financial model is to forecast a company's future financial performance. This forecast is typically built upon historical financial data, industry trends, and assumptions about future economic conditions. The model then projects key financial statements, including the income statement, balance sheet, and cash flow statement, over a specified period, usually five to ten years.

Financial models are used for a wide range of purposes. They are essential for valuation, which involves determining the worth of a company or an asset. They are also crucial for mergers and acquisitions (M&A) to assess the financial feasibility and potential synergies of a deal. In addition, companies use financial models for budgeting, forecasting, strategic planning, and raising capital. Investors and lenders rely heavily on financial models to evaluate investment opportunities and creditworthiness.

The construction of a financial model requires a strong understanding of accounting principles, financial theory, and spreadsheet software, typically Microsoft Excel. The accuracy and reliability of a financial model depend on the quality of the input data and the reasonableness of the underlying assumptions. Sensitivity analysis and scenario planning are often incorporated into models to understand how changes in key variables might affect outcomes.