What Does It Mean to Normalize Historical Financial Data and Why

question 47

Essay

What does it mean to normalize historical financial data and why is this an important part of the financial model building process?

---

Definitions:

British Pound

The official currency of the United Kingdom, also known historically as sterling, which is one of the world's oldest currencies still in use.

Panama Canal

A man-made waterway that connects the Atlantic and Pacific Oceans across the Isthmus of Panama, significantly reducing the maritime journey time between the east and west coasts of the Americas.

Military Intervention

The act of a nation deploying its armed forces into another sovereign country for the purpose of influencing its affairs or securing its interests.

Voyage Length

The duration or distance covered by a journey, particularly by sea or space.