A Financial Model is a tool that is built to create a summary report of companies expenses and earnings. It is in the form of Excel. This spreadsheet helps to forecast business’ financial performance into the future.
Generally, the purpose of this tool is to forecast the company’s historical performance and anticipate the near future of the company's stock performance.

For instance: Financial modeling can cash flow analysis, sensitivity analysis, or in-depth appraisal.
The other basic purpose of Financial Model can be:

calculation the cost of new projects, budget decision, and allocation of corporate resources.