What is ‘Financial Modeling’
Financial modelling is the process by which a firm constructs a financial representation of some, or all, aspects of the firm or given security. The model is usually characterized by performing calculations and makes recommendations based on that information. The model may also summarize particular events for the end user such as investment management returns or the Sortino ratio, or it may help estimate market direction, such as the Fed model. 10
BREAKING DOWN ‘Financial Modeling’
It is the goal of the analyst to accurately forecast the price or future earnings performance of a company. Numerous valuation and forecast theories exist, and financial analysts are able to test these theories by recreating business events in an interactive calculator referred to as a financial model. A financial model tries to capture all the variables in a particular event. It then quantifies the variables and creates formulas around these variables. In the end, the model provides the analyst with a mathematical depiction of particular business event. The primary software tool used to do this is the spreadsheet. Spreadsheet language allows the financial modeler to reconstruct almost any cash flow or revenue stream. 11
Prospective Financial Modeling with Excel - August 29, 2018
Sunrise Rotary Club of Baton Rouge - August 30, 2018 (Mark Shirley will be speaking at the Sunrise Rotary Club on Fraud Scams and Schemes on August 30th).
2019 LSU Fraud and Forensic Accounting Conference - July 18 and 19, 2019 - Benford's Law - Stay tuned for more details
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