Financial modelling involves creating representations of financial scenarios to aid in decision-making and analysis. It is the process of creating a mathematical representation of a financial situation, typically in the form of a spreadsheet, to forecast a company’s financial performance. This model uses historical data and assumptions about future performance to predict outcomes and support decision-making. Financial modelling is a crucial skill in finance, used by professionals such as investment bankers, corporate finance analysts, and equity researchers to make informed financial decisions.