A financial model is a comprehensive tool for assessing the current state of an enterprise and forecasting its future performance. It includes a variety of indicators that assess the financial flows of a business, including revenue, cash flows and profit. It can be used to determine the impact of both external factors, such as changes in the market, and internal factors, such as changes in the company's operations, on its financial position.
The financial model solves the problem of assessing the performance of assets, accounting for resources and creating a financial plan, as well as optimising the costs of production, including logistics and manufacturing processes. It considers production as a dynamic model with a balanced flow and multiple streams, which helps to maintain the right balance between production and consumption capacities, avoiding under- and over-utilisation of production capacities.