Financial modelling basics is the process of creating a numerical representation of a financial situation. It involves constructing mathematical models using data from various reliable sources such as financial statements, stock market trends and economic forecasts. Models can range from simple spreadsheets to complex simulation systems. These models are then used by financial professionals to make informed decisions about investment opportunities, business strategies and risk management plans. Financial modelling provides an efficient way to project future performance and plan for potential risks. It allows businesses to analyze the effectiveness of different scenarios and make decisions that will deliver the best possible results.