Common Financial Models are analytical tools used to assess and analyze financial performance, evaluate pricing strategies, and inform budgeting and investment decisions. Through the use of various data points, assumptions, and scenarios, these models can help organizations make informed decisions about their financial future. They are typically made up of three core components: forecasting, scenario analysis, and risk assessment. Together, these elements provide an objective view on how best to manage resources, understand market trends, and make sound investments for the long term.