Question: What are the main functions of a financial modeling professional?
Answer: The main functions of a financial modeling professional include: reading and interpreting the interrelations between the income statement, balance sheet and statement of cash flow; entering data from historical financial statements into a spreadsheet (typically Excel); conducting basic research on similar companies in the industry, gathering their financial information and developing standardized ratios to compare companies of different sizes; developing financial projections; calculating the terminal value and the cost of capital; doing valuations; using ratios to develop comparable valuations; and presenting financial models in PowerPoint.
In corporate jobs, financial modelers would have to work closely with marketing and sales on aspects such as pricing and revenue projections, with accounting on expenses, balance sheet and cash flow items, with project managers on manpower, material and costs – to develop a financial model for business cases, etc.
Do You Want to Complete A Financial Modeling Training Course? If you are looking to learn more about completing a financial modeling training program, you should check out our self-paced financial modeling training program on the BusinessTraining.com platform, which is called the Financial Modeling Specialist (FMS).