Dynamic financial analysis (DFA) is an approach used by organizations to model financial results of the entity under a variety of conditions. The modeling techniques embedded in DFA developed as advances in the computational power of business computers made running large numbers of complex simulations feasible. The models have gradually become more complex, more realistic, and more widely applicable. Companies, rating agencies, and regulators now routinely use DFA type models to evaluate the financial condition of an organization and assess operational changes. This article describes this approach, compares simulation with other financial planning methods, and provides the details of a publicly accessible DFA model that has been extensively used in research and education. DFA is most widely used by insurance companies and other financial institutions, but many nonfinancial firms utilize similar techniques.