Financial models are quantitative representations of a company's financial performance and operations. They are used to forecast future financial outcomes based on historical data, assumptions, and various financial concepts. Financial models are essential tools for decision-making in finance, investment analysis, budgeting, and corporate finance. Here are some key aspects of financial models: 1. **Components of Financial Models**: - **Inputs**: Historical data, assumptions (growth rates, expenses, revenues, etc.), and macroeconomic factors.
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