# Financial Modeling

*Careers & Credentials — Finicade finance glossary*

Financial modelling builds a spreadsheet linking the three statements to project a business and test scenarios. The craft is in the assumptions and the structure, not the formulas: a clean model separates inputs, calculations and outputs so anyone can find the drivers. Its real function is sensitivity analysis — establishing which assumptions matter — rather than producing a single confident number.

**Also known as:** financial model, three statement model, modelling

**Related terms:** [Discounted Cash Flow (DCF)](https://finicade.com/glossary/dcf), [Leveraged Buyout (LBO)](https://finicade.com/glossary/lbo), [Pro Forma](https://finicade.com/glossary/pro-forma), [Investment Banking Analyst](https://finicade.com/glossary/investment-banking-analyst), [Financial Planning and Analysis](https://finicade.com/glossary/financial-planning-and-analysis)

Source: https://finicade.com/glossary/financial-modeling