What Is Financial Modeling?

Financial modeling

Justin Bumann is a business leader and entrepreneur who functions as a managing partner with an advertising firm serving clients throughout the United States. Further to his expertise in integrated marketing strategies, Justin Bumann leverages financial modeling to help clients make sound business decisions and conduct their operations with confidence.

Financial modeling leverages mathematical calculations to help companies create financial representations of their various facets. Through these calculations, the model informs decision-making, with more complex models providing recommendations based on the available data. Several financial planning models exist, each focusing on different areas. For example, the Fed model helps users determine market direction and trends, thus helping companies developing advertising and product strategies.

The overall goal of financial modeling is to use data to create a forecast, often related to the future earnings of a company or the evolution of the marketplace. The key to a good financial model is the ability to capture as many variables as possible, thus accounting for every issue and trend that could affect the financial future of a company.

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