Finance Analyst Interview Question:

What is financial modeling?

Submitted by: Muhammad

The usual practice in conducting a financial analysis is called financial modeling. It can also be mentioned as a quantitative analysis which is mainly utilized for asset pricing or for general corporate finance. The important aspect of financial modeling is that hypothetical variables are utilized in the formula so that the impact on economic conditions, profitability, and market behavior can be determined. It is always advisable to present your answers with an example. You can mention that financial modeling can be used to find out the jet fuel cost for airlines for the annual rise of 5% in crude oil for future years.
Submitted by: Muhammad