Tricks Excel

7/29/2019 Tricks Excel

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Summer 2008

Excel Basics


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Working Without the Mouse

It is important to be able to work without the mouse in Excel

Mastering this will Increase productivity and efficiency

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Menu Items

Alt: selects the menu bar

Once the menu bar ishighlighted, use underlinedletters to navigate throughthe menus

Example: Alt + F opensthe File menu

Esc: exits out of the menubar allowing you to continueto work in the spreadsheet


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Keystroke Shortcuts

A shortcut is a series of keys

that allows you to perform aspecific function withoutusing the menu bar

When a specific menu bar isopen, the shortcuts are listedon the right

Ctrl + Letter

Example: to open a newworkbook, select either:

Alt + F + N Ctrl N


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Dialog Box

Some menu items contain a dialog box

Cycle through the pages using either the arrow keys or Ctrl +Tab To cycle in reverse use Ctrl + Shift + Tab

Use Alt + Underlined letter to enter a selection on a page

You can also use Tab to maneuver through a page To cycle in reverse, use Shift + Tab

After selecting items, press Enter to save and close or Ctrl +Tab to move to another page

Esc will escape the dialogue box without saving any changes


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Dialog Box Example

To make changes to the font:

Alt + O + E

Use the Ctrl + Tab to moveacross the pages to the Fontpage

Press Alt + Underlined letterto make changes, or use Tabto cycle through the optionson the page Alt + S allows you to change

the size of the font Press enter to accept those

selections


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Changing Applications

Cycling through open

applications: Use Alt + Tab

It is helpful to have windowscycle through only openapplications as opposed to all

open files To do this, select Alt + T + O,then go to the View page anddisable the setting for Windowsin Taskbar (Alt + W)

Now Alt + Tab will cycle throughall open applications and noteach open workbook

Cycling through openworkbooks in Excel: Use Ctrl + Tab to cycle through

all open workbooks in Excel


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When to Copy vs. Cut

Copy Copies existing cells and pastes a duplicate of the copied cells in

another area of your worksheet

Leaves original cells in place, as well as any equations that referencedthose formulas

To use copy:

Highlight desired cells Alt + E + C, or Ctrl + C

Cut Removes a group of cells and places them in another area of your

worksheet, all equations that referenced cut formulas update to the

new location of the cells To use cut:

Highlight desired cells

Alt + E + T, or Ctrl + X


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Copy vs. Cut Example

Original Formula

Cut (Ctrl X, enter)

Copy (Ctrl C, enter)

Notice the sumstill references

A2:A6, and whilethe result has

moved from A7to cell C7

Notice theoriginal sum is

still in cell A7,and the copiedcells no longerreference theoriginal cells


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Undo and Redo

Undo: Undoes the previous

action Includes formatting and

calculations

Undo can undo a series of thelast several actions of bothformatting and calculations

Alt + E + U or Ctrl Z

Redo: Returns the previous

undone action Includes formatting and

calculations

Redo can redo a series of thelast several undone actions ofboth formatting andcalculations

Alt + E + R or Ctrl Y


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Using Go To

Go To allows you to locate: cell references

named ranges and cells

To open the Go To dialogbox, use F5

Example: Enter B138 in theReference: text field tolocate cell B138.

F5 & Enter to return


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Working in a Spreadsheet

Selecting a range of cells Hold Shift and use the arrow keys to select a range of cells

The range can be vertical, horizontal or both

Ctrl + Shift + arrow keys will select an entire contiguous groups of cells

Editing a formula F2 allows you to edit a formula

There are two different modes for editing formulas:

Edit mode: Using the arrow keys will move the cursor in the formula bar to allowfor direct editing of the formula (arrow keys control the formula bar)

Enter mode: Using the arrow keys will select additional cells for the formula(arrow keys control movement in the spreadsheet)

Use F2 to toggle between these two modes

Moving to a different worksheet within the same workbook Use Ctrl + Page Up or Ctrl + Page Down


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Delete vs. Shift Rows Up

Be aware of the difference between delete and shift rows up

Deleting erases the value or function in the selected cell,leaving others around it untouched Delete cells or entire rows when possible

Shifting rows up moves the values below the selected cell up

a row Shifting cells of rows up is not a modeling best practice as it will

incorrectly alter the alignment of your data


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Delete vs. Shift Cells Up (contd)

Original table

Deleting the cell erases only the value inthe selected cell.

Shifting cells up moves the 5.2 (2006sprepaid expenses) into the inventory

position. This is incorrect!


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Paste vs. Paste Special

When a cell is copied, both the formula and formatting for that

cell are copied Paste

Pastes copied cells, both formula and formatting

To use paste:

Alt + E + P, or Ctrl P

Paste Special Pastes specific things about the copied cells such as:

Onlyformulas

Onlyformats

To use:

Alt + E + S

TipPaste special is a big time saver forformatting a spreadsheet, once youhave a few rows formatted, you canpaste that formatting down the page

without worrying about formulas

Ab l R l i C ll R f


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Absolute vs. Relative Cell References

Overview A relative cell reference tells Excel that the cell used in a formula depends

on the location of that formula This is the default cell setting

A complete absolute cell reference tells Excel the exact cell that will alwaysbe used (locked) in the formula regardless of the location of that formula

Use $ to signify an absolute reference

A partial absolute reference tells Excel that only part of the reference (eitherthe row or column) is locked

TipF4 will cycle through $ applications

of $A$1, A$1, $A1, and A1

When the formula is copied across, B4 will remain locked while C4 willupdate with each new column as the formula is copied


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Relative References

Relative References

Default Excel reference Allows formulas to be copied

while updating cell references

In this example: D4 and E9 are relative

references As you can see, they change to

E5 and F10 when the formulais copied right and down

The column has increased byone (from D to E and E to F)

The row has increased by one(from 4 to 5 and 9 to 10)


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Absolute References

Absolute References

Allows cell references to be locked and thus not updated whenformulas are copied Rows, columns or both can be locked by use of dollar sign ($) Examples

Lock Column: $A1 Lock Row: A$1 Lock Row and Column: $A$1

In this example: Each cell in the row depends on the income tax rate of 38% (C19)

Thus, column C of cell C19 is locked ($C19) to prevent it from changing whencopied across the row

However, D18 should change with each year, therefore it remains unlocked


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Partial Absolute ReferencesAn Example

A times table can be created

with a single formula copieddown and across.

In this example: Row 2 values need to be locked

(C$2)

Column B valued need to be locked($B3)

Incorrect

Correct


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Solving Equations with Operators

After inputting data, use an

operator to solve an equation Excel recognizes +, -, *, /

Begin all equations with an =sign The formula can be entered

into either the active cell or theformula bar

Next, select the cell to beincluded in the equation

Type the operator of yourchoice

Select any necessary cells to

complete the equation Press enter after completing

the equation to return theresult


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Solving Equations with Functions

The values included in the

function can be separated by : for a range

, for individual values

: and , for a combination

Text in a function is always

place in quotations

Syntax in brackets [ ] isoptional and can be left outwithout effecting the function


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Solving Equations with Functions

Excel functions make it easier to do many essential tasks

such as summing or calculating the average, maximum, orminimum value from a set of data

Functions can either be entered in the formula bar or activecell

Excel will provide the syntax below the formula bar Always begin a formula with =, followed by the name of the

function

Enclose the contents of the function with () Example: =sum(B2:B4) for a sum function


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Solving Equations with Goal Seek

Goal Seek is used for what-if analysis

By selecting OK after the analysis, you are telling Excel to acceptthe changes made by goal seek and change your originalspreadsheet

By selecting Cancel after the analysis, you are telling Excel toreject the changes made by goal seek and leave your original

spreadsheet unaltered

Use when the desired result of a single formula is known,but the input value needed to determine the formula resultis unknown

Alt + T + G Set cell must include a formula

By changing value must be a single cell


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Goal Seek (contd)

In this Example: Left: shows the original interest rate and payment

A goal seek was performed to determine the interest rate requiredfor a monthly payment of $2000

Right: Goal seek has found that an interest rate of 7.02% would be

required

Notice that goal seekchanged the values ofthe interest rate andpayment.

Selecting OK will savethese changes willCancel will return theoriginal values


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Inserting Copied Rows

Inserting copied rows

allows for easy copying offormats, row headers, etc.

Shift + Spacebar along withthe arrow keys to selectrows to be copied

Ctrl + C to copy cells

Select portion of yourworksheet where thecopied rows will be inserted

Alt + I + E to insert copiedrows

Select cells and then copy

and insert using Alt + I + E


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Named Ranges Excel allows a cell or a group

of cells to be named This makes referencing cells

in formulas easy Especially if you find yourself

often referencing the same cell

Example: By naming cell B3 ir,you can type ir (no quotations)into any formula that uses thatinterest rate instead of typingB3

Alt + I + N + D

WarningIf a worksheet containing a named cellis duped, then multiple cells will contain

the same name throughout theworkbook.


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Finding Named Cells Using Go To

What happens when you

have named a cell and forgetwhere it is?

F5 will allow you to see allnamed cells and it will takeyou to their locations on the

spreadsheet.

Use Tab and the arrow keysto move between differentcells or type in a cellreference directly Ex: Cell B2 was named rate.

F5 brings up the names of allnamed cells and will take youto B2 if rate is selected.


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Color Coding

Makes it easier to read a model and discern formulas from

inputs: Formulas: Black

Example: =B2+C9

Inputs: Blue

Example: =3.14159 Partial Input: Red

Contains both an input and cell reference

Example: =3.14*C2

This is generally NOT a good practice

It would be better to input the 3.14 into a cell and reference it in themultiplication formula


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Formatting Cells

Alt + O + E

Font page: change the fonttype, style, size, or color

Format page: specify theformatting of characters in acell as either text or a number

Number formats will truncate 0s

Add specific formats (i.e.currency, percentage, time,accounting)

Patterns tab: shade a cell

Helpful shortcuts: Bold: Ctrl + B

Underline: Ctrl + U

Italicize: Ctrl + I


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Using Custom Number Formats

Custom Number Formats

allow formatting outside ofthose bundled with Excel

Alt + O + E, then go to theNumber page Hit Alt + C and select Custom

from the bottom of the list

The syntax is:POS;NEG;ZERO;TEXT Check Excels Help for more

syntax notes

Example: Yes/No Trigger

Syntax:Yes;ERROR;No;ERROR

Returns Yes for any positivenumber, No for zero andERROR for any negativenumber or text


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Using Indents

Indenting enhances

readability One way to indent is to add

spaces before the text Example: Cash

However, if you reference this cell,you will be forced to include theindenting

To use indenting: Alt + O + E and go the Alignment

page

Alt + H to choose left or right indent

Alt + I to change the indent numberaccording to the severity of the indent

Using an indent formats thecell as opposed to having theindent be a part of the text


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Conditional Formatting

Allows for formatting cells

based on certain criteria Select Alt + O + D to bring up

the dialog box

Use the drop down menus toinput commands

Alt + F to create the format

Example: To format negativenumbers as red and positivenumbers as green, highlight

cells and apply the formattingshown on the right Use the Add >> button to add

additional conditions


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OFFSET Function

Returns a cell value that is a specified number of rows and

columns from a particular cell The value returned can be a single cell or a range of cells

Syntax: =OFFSET(reference,rows, columns,[height],[width]) Reference: specifies where on the spreadsheet Excel should start

E7 is the reference cell in this example

Offset will then move the specified number of columns and rows fromthe reference

In this example, Excel will move 2 rows down (E7) and 0 columns across

By changing the number in cell C3 from 2 to 1, the values in cellsE10:H10 will change accordingly to 10%


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OFFSET Function (contd)Notice that the active case number determined the growth rate which will be used to

calculate projected revenue.

Rows can be grouped (as done with rows 8 and 9) and hidden (indicated by the + sign to the left ofrow 10) so that only the growth rate that corresponds with the active case will be visible. This

concept will be further demonstrated in the modeling section.


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Named Ranges Revisited

As we said, named cells can be used in formulas

Lets try naming the reference cell in our OFFSET function toillustrate this Name cell C4 Active by selecting Alt + I + N + D

F5 allows you to see all of the named cells and ranges in your

worksheet


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VLOOKUP and HLOOKUP: General Info

Functions that allow you to look up values in a table of data

Required syntax Lookup_value: value to be found in the first row (HLOOKUP) or column

(VLOOKUP) of the table

Can be a value, a reference, or a text string

Table_array: table of information in which data is looked up

Reference either a range of cells or a range name

Row_index_num: row number in table_array from which the matchingvalue will be returned

Used in an HLOOKUP

A row_index_num of 1 returns the first row value in table_array, arow_index_num of 2 returns the second row value in table_array, etc.

Col_index_num: column number in table_array from which thematching value must be returned.

Used in a VLOOKUP

A col_index_num of 1 returns the first column value in table_array, acol_index_num of 2 returns the second column value in table_array, etc.


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VLOOKUP

Searches for a value in the

first column of a table andreturns a value in the samerow from another column inthe table

The V in VLOOKUP stands

for vertical VLOOKUPS are used only with

vertically organized tables

Syntax:=VLOOKUP(lookup_value,

table_array, col_index_num,[range_lookup])


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HLOOKUP

Searches for a value in the top row of a table and returns a

value in that same column from a row you specify in the table The H in HLOOKUP stands for horizontal

HLOOKUPS are used only with horizontally organized tables

Syntax:

=HLOOKUP(lookup_value,table_array,row_index_num,[range_lookup])


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A1 vs. R1C1 Cell References

A1 Reference style: Excels default style, which refers to columns with letters and refers

to rows with numbers (row and column headings) For example, B2 refers to the cell at the intersection of column B

and row 2

R1C1 Reference Style Useful for computing row and column positions in macros (MUST

TURN THIS FEATURE ON) Tools Options General

Excel indicates the location of a cell with an "R" followed by a row

number and a "C" followed by a column number.


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= INDIRECT(ref_text,a1)

Use INDIRECT when you want to change the reference

to a cell within a formula without changing the formulaitself

If a1 is FALSE, ref_text is interpreted as an R1C1-style reference


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INDIRECT Function (contd)

The formula in C3 returns 4.25.=Indirect(A3) tells excel to look to A3 for instructions.

A3 includes the value B3 directing Excel to returnthe value in cell B3.

Note: Cell B5 is named Payment

The formula in C5 returns 122.

=Indirect(A5) tells excel to look to A5 for instructions.A5 says Payment directing Excel to return the valueof the cell named Payment which is B5.


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Avoid Merging

Merging cells can make it

hard to copy, insert, or deletecells

A better approach is toformat the cells using Center

Across Selection Alt + O + E

Go to the Alignment page andhit Alt + H

This method allows text to becentered over the range ofcells without merging


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Avoid Spacer Columns

Spacer columns used to

separate underlined adjacentcells hurt the ability to fluidlycopy formulas across

A better approach is to formatthe adjacent cells to Center

Across Selection (prior slide)

and then apply a SingleAccounting Underline from theUnderline drop box on theFont page Alt + O + E

Go to the Font page and hit Alt

+ U

This achieves a similar formatas borders & spacer columnswithout the mess

Use a Single Accounting Underline

Dont do this!


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Save vs. Save As

Save

Saves a file by updating from the previous save To use save:

Alt + F + S

Save As Saves the file under a different name creating two identical documents

with different names This is beneficial because a file can be altered without changing the original file

(i.e. using a template)

To use save as:

Alt + F + A


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Printing- Page SetupAlt + F + U

The page tab allows you to choose the printlayout of your worksheet


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Formatting for Printing

A good way to setup your page is to scale the page to fit 1

page wide while not specifying how many pages tall This will ensure that your printed model does not run off the

side of the page

To scale your workbook, select Alt + F + U, go to the page

titled Page and select Alt + F for Fit to: and specify 1page(s) wide, while not inputting a value for page(s) tall


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Page Setup (contd)

The Sheet tab allows you to choose print properties such as

the appearance of gridlines or to repeat row and columnheadings at the top of each page


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Print Area

Allows you to specify the

area you wish to fit on asingle page

Highlight the desired cells

Alt + T + S will set the printarea

Alt + T + C will clear the areayou have previously set


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Print Preview and Print

Alt + F + V

Allows you to view yourdocument exactly as it will beprinted

Alt + F + P to print

Here, you may choose: Number of copies

Which pages you would likeprinted

The order in which yourworksheets will be printed

The printer you wish to use


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Full Menus

The following are several

options to gear Excel moretowards power users

Enable Full Menus Forces Excel to show full

menus

Alt + T + C Check Always show full

menus Alt + N


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Data Entry Options

Unless you are conducting

heavy data entry, it is helpfulto turn off move selectionafter entry

Turning off this feature willkeep Excel in the same

active cell after pressingEnter when writing formulas(instead of moving down arow)

To do this: Alt + T + O, select the Edit

page, then hit Alt + M todisable

Edi i O i


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Editing Options Editing in the formula bar instead

of the cell can make formula

writing easier To do this you need to disable the

Edit directly in cell feature

Alt + T + O then go to the Editpage

Hit Alt + E to disable Edit directlyin cell

Only allows formula editing in theFormula bar

This is beneficial when creatinglong formulas

When long formulas are beingedited in the cell directly, the formulahas the tendency to spill over ontoother cells in the worksheet makingit difficult to see those cells andreference them in the formula

T i


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Triggers

Triggers are used to give greater flexibility to a model by

allowing the user to determine whether or not a formulashould calculate Triggers can used to determine whether or not entire formulas or just

component pieces of formulas should calculate

Methods for using triggers: IF statement

Multiply by 0 or 1

T i U i IF S


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Triggers: Using an IF Statement

Use an IF statement to determine whether or not the formula

(or component of the formula) should calculate Example

In the example below, anytime the text yes is in cell B2, the $5 ofTarget will be added to the $10 of Acquirer

Otherwise, the formula will only show the $10 of Acquirer

Note that the IF statement if effective, but not the most robustmethod for formula writing Example: Someone could type Y or Yeah meaning yes and Excel

would still evaluate the statement to not include the $5 of Target

Result: 15

Trigger

U i 1/0 (Y /N ) T i


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Using a 1/0 (Yes/No) Trigger

Instead of using an IF

statement with text, set thetrigger to either 1 or 0 When the trigger is 1 it will

multiply 1*B5, which willinclude B5 in the calculation

When the trigger is set to 0 willmultiply 0*B5, and it willtherefore drop out of thecalculation without effectingany other part of the calculation

In this example, when B2=1the result is 15, when B2=0 theresult is 10

Tip

Notice in the picture below that cell B2still contains the number 1, but the text

yes is displayed. This is a customnumber format explained in the following

slide.

Trigger

U i C N b F


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Custom Number Formats

allow for formats outside ofthose bundled with Excel

Alt + O + E, on the Numberpage, the last option underCategory (Alt + C)

The syntax is:POS;NEG;ZERO;TEXT Not all arguments are required when

creating a custom format

Check Excels Help for more syntaxnotes

Example: Yes/No Trigger Syntax: Yes;ERROR;No;ERROR Returns Yes for any positive

number, No for zero and ERRORfor any negative number or text

U d di E


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Understanding Errors

#NAME?

Using a name that does not exist Misspelling a name

Misspelling the name of a function

Entering text in a formula without enclosing the text in doublequotations (text)

Omitting a colon (:) in a range reference Referencing another sheet not enclosed in single quotations (sheet)

#DIV/0 Entering a formula that contains explicit division by zero

Example =5/0

Using a cell reference to a blank cell of a cell that contains zero as adivisor

U d di E ( d)


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Understanding Errors (contd)

#REF

Deleting cells referred to by other formulas Pasting moved cells over cells referred to by other formulas

Using a link to a program that is not running

#VALUE Entering text when the formula requires a number or logical value

(true/false)

Supplying a range to an operator or a function that requires a singlevalue, not a range

Entering a cell reference, formula, or function as an array constant

TipExcels Help feature can provide assistance in troubleshooting

additional errors. Simply type the specific error in the search bar.

ISERROR


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ISERROR

The ISERROR formula tests if A2 contains an error value. If it does, the IFstatement tells excel to return N/A to improve the worksheets clarity. If not, theIF statement tells excel to return the value of A2.

T bl h ti #REF E l


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Troubleshooting #REF - Example

Suppose cell E3 is used by numerous cells in your model, but

you dont realize it. If you cut another cell (Ctrl x) and paste it over cell E3, then any cells

that use E3 in their own formulas will now have a #REF! error.

The same thing happens if you highlight row 3 and run Edit Delete.

If you are considering deleting a row or group of rows, it can

be difficult to know ahead of time whether there are importantcells in it.

You can run Tools Formula Auditing Trace Dependents, butyou need to do this one cell at a time! Note: There are more details about tracing dependents in the Menu

Items slide deck

T bl h ti #REF ( td)


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Troubleshooting #REF (contd)

What if there are tons of #REF

errors on yourworksheet? How do you fix

them? The key is to identify the root

source of the #REF! state.

Do a Find (Ctrl + F) using thesettings shown below, searchingwithin formulas instead ofvalues for #REF.

This will take you to the cells thathad relied on the section you

obliterated. All you need to do is fix the cell or

row which has caused theproblems, and your entireworksheet will be restored!

Ci l R f


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Circular References

Circular References occur

when a formula refers, eitherdirectly or indirectly, back toits own cell

The text Circular orCalculate will be displayedin the status bar if a circ is

present Close all other files to narrow

down the circ to a certainworkbook

Use the Circular Reference

Toolbar to resolve the circ Alt + V + T (select Circular

Reference Toolbar)

Notice how A30 is an input to cell A30, causinga circular reference. Use the TracePrecedents function to locate all inputs.

Also notice the text Circular: A30 in the statusbar indicating the circ

It r ti n


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Iteration

By turning Iteration on, Excel will attempt to solve for any

circs in the spreadsheet. When modeling, it is best to operate with Iteration turned off

until the model is finished.

Alt + T + O + C

Tr bl h tin Err r F rm l A ditin


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Troubleshooting Errors- Formula Auditing

Formula Auditing aids in troubleshooting errors. Withthe cell containing the error selected,

Alt + T + U + E traces the error

Tracing errors shows the cells referencedby the cell that contains an error. In thiscase, division by zero occurred.

Tracking Precedents in Native Excel


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Tracking Precedents in Native Excel

Provides the ability to track

which cells feed a certain cell Ctrl + [ to highlight precedent

cells Hit Tab to cycle through each

precedent

Example In the example below, A1, B2,

and B3 are precedents of B5

Precedent

Precedent

Function

Original equation Cells B2, B3, and B4 are precedents of B5

Tracking Dependents in Native Excel


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Tracking Dependents in Native Excel

Tracing dependents provides

the ability to track which cellsreference a certain cell

Use Ctrl + ] to highlight thedependent cells Hit Tab to cycle through all

dependents Note: when tracing

precedents and dependentsExcel will only highlight andcycle through cells on the

active worksheet

Function

Dependent

Dependent

Cell B5 is the dependent of B2, B3, and B4

Grouping Rows and Columns


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Grouping Rows and Columns

Grouping rows and columns is a superior alternative to hiding

rows and columns It makes visible the fact that rows and columns are indeed hidden

Highlight rows or columns that need hidden

Alt + Shift + left/right arrows will group and ungroup rows

Alt + Shift + up/down arrows will group and ungroup columns

Grouping Rows and Columns Cont


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Grouping Rows and Columns Cont.

To hide grouped data

Select a cell in the range to be hidden and hit Alt + D + G + H To unhide grouped data

Select the first cell in the range that is hidden and hit Alt + D + G + S

In this example, highlight cell C11 to ungroup

Notice in the example that column A and rows 5-10 are now

hidden

Sorting Data


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Sorting Data

Groups of data can be sorted

by category headings Text or numerical data can be

sorted in either an ascendingor descending order

Select the data range to be

sorted Alt + Data + S

Select how you would like yourdata organized

NoteIf the data range you selected includes theheader row (the column headings in this

example) be sure to relay that to Excel bychecking the Header Row option under My

data range has

PivotTables


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PivotTables

A PivotTable report is an interactive table that quickly

combines and compares large amounts of data What it does:

Rotates rows and columns to see different summaries of the sourcedata

Displays the details for areas of interest

When to use it: To analyze related totals, especially if there is a long list of figures to

sum

To compare several facts about each figure

PivotTables Cont


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PivotTables Cont.

How to use it:

Select your data and hit Alt + D + P Select PivotChart report (Alt + r) and hit Finish (Alt + F)

By choosing a PivotChart report instead of just a PivotTable Excel will not onlycreate the PivotTable, Excel will also add a chart and sheet to your workbook tobetter display all your data

PivotTables Cont


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PivotTables Cont.

Choose your layout by deciding where to place each data

range Drag and drop the data boxes into the proper fields on the

chart The Data rectangle is for quantitative data that should be summed

The Column and Row rectangles are used to organize qualitative data


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PivotTable Example Cont


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PivotTable Example Cont.

Notice the table is dynamic:

By using the drop down arrowsthe table will instantly update todisplay revenues for the anycombination of division andproduct

Data Table for Sensitivity Analysis


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Data Table for Sensitivity Analysis

Creating a data table is simple with Excels Data Table

feature It is especially useful for creating a sensitivity analysis

Example: In this example, we will be creating a sensitivity table to test how

different growth rates and interest rates effect the value of a growing

perpetuity. First solve for the value of perpetuity by dividing the cash flow by the

difference between the interest rate and growth rate.

Formatting the Data Table


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Formatting the Data Table

Follow the format seen right Your calculated value MUST be

linked to the top left-most corner ofthe table

In this table, the formula in cell B9 is=B6

Note that the 12% and 4% in theheadings of this table MUSTbehardwired (input) values for the table

to work If you reference other cells for those

values (such as B4 and B5), the datatable will not work correctly. In effect,you created a circular reference thatExcel cannot solve.

The growth rate (4%) and interest rate(12%) used to calculate the original

value of perpetuity should be the middlenumbers in the table setup

The other percents (5%, 3%, 10%,14%) may be hardwired or calculated

Use the formula =D9+.02 in cell E9to get 14%

Using Data Table


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Using Data Table

Highlight the area of your tableas seen on the right Be sure to include the row and

column that contain your inputs

Alt + D + T The center value of the table

should always match the original

value The intersection of this point is the

original data (in this example12,500 is found by using the rates4% and 12%)

It is a good idea to implement acheck

Take the absolute value ofthe difference between themiddle value of the table andthe original value

Example: =abs(D11-B6)

TipYou may wish to custom format the 12,500to display text such as valuation

Data Table Options


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Data Table Options Data tables take time to

calculate because Excel is

creating and running themodel several times behindthe scenes to create the datatable If your model has several tables, it

is a good idea to operate withcalculation set to Automatic

except tables until the model isfinished (Alt + T + O)

Creating a check serves as areminder to recalculate beforeprinting (F9)

Setting calculation to automaticexcept tables(not manual) is stillan acceptable modeling practiceas long as you have created thecheck

A model that needs to run manualcalculations is usually a flawedmodel

Data Validation


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Data Validation

Data Validation places

constraints on the types ofdata that can be entered intoa cell

Data can be constrained toranges of values with the

following characteristics: Whole numbers

Decimals

Dates

# of text characters allowed

Alt + D + L

Data Validation Cont.


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Data Validation Cont.

One of the most common

applications of Data Validationis inserting a list box into a cell

Select the desired cell and hitAlt + D + L

Choose List from the Allow

box and type the desired itemsof the list in the Source box,each separated by a comma

Alternatively, you can also useinputs from the model in theSource box by entering the cell

reference

In this example: only values1,2, or 3 may be entered intothe cell

Split Window


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Split Window

Splitting the screen allows

you to see different areas ofthe same worksheet

To bisect the screen: Place the cursor in the left-

most cell of the row where youwant to split the screen

Alt + W + S to split the screen

Alt + W + S again to close splitscreen mode

To easily toggle betweenpanes, even when editing aformula, use F6

Freeze Pane


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Freeze Pane

Freezing the window pane prohibits scrolling This tool is sometimes used to freeze column headers so

that as you scroll through a long list of data, you can stillsee the headings

Alt + W + F The active cell designates where the window will freeze

To freeze a row of headings, make the active cell column A of the

row just below the heading

Because A2 was selected before freezing,

row 1 is frozen

Even as you scroll down the spreadsheet,these headings are still visible, notice that thedata has been scrolled to row 16

Arrange Windows


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Arrange Windows

Arranging the windows is a quick and easy way to see all

open workbooks Different options for arranging windows include

cascading, tiling, or vertically/horizontally aligning openwindows

You can also choose whether you want all openworkbooks arranged or only the windows of the activeworkbook

Alt + W + A


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Working with Excel Functions

Function Wizard


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Function Wizard

Excels function wizard allows

you to search for a functionand then receive anexplanation of how to use thatfunction Alt + I + F

Type a brief description of thetask in mind in the Search fora function box

You may also select acategory and browse the

functions listed After selecting a function, the

wizard explicitly describeseach piece of the argument

This is a link to Excel Help which will providegreater detail and explanation of the function

Excel Functions Revisited


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Recall that each equation must begin with =

The function name must follow Ex: =SUM

A set of parentheses must enclose the arguments Be sure that all parentheses are closed, this becomes especially

important when writing complex formulas with multiple functions

Syntax for selecting cells when writing formulas: To use individual cells, separate the cell references with a comma

Example: =sum(A2,A3,A4) tells Excel to sum A2, A3, and A4

To select a contiguous region of cells, use a colon

Example: =sum(A2:A4) tells Excel to sum all cells in column A rows 2 through 4

To select both a region of cells and individual cells a combination of acolon and a comma can be used

Example: A2:C2,A6 tells Excel to sum all cells in row 2 columns A through CAND cell A6

Required/Optional Formula Components


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q / p p

Below is a formula which we will later visit; however, the

principles remain constant for all functions When typing a formula into Excel, Excel displays the

components of the formula The piece of the formula that you are currently entering will be bolded

Ex: rate

The necessary punctuation will be displayed (commas, parentheses,colons, etc.)

The pieces shown in [brackets] are optional

If values are not entered in their places, they will assume a default which can befound in the help menu

Bracketed items offer additional properties/restrictions to the formula

If you move the cursor over the name of the function, you can link tothe help menu to get specific detailed instructions on using the function

Function Wizard


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Excels function wizardallows you to search for afunction and then receive anexplanation of how to use thatfunction

Alt + I + F

Type a brief description of thetask in mind in the Search for afunction box

You may also select a categoryand browse the functions listed

After selecting a function, thewizard explicitly describes eachpiece of the argument

This is a link to Excel Helpwhich will provide greater

detail and explanation of thefunction



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Recall that each equation must begin with =

The function name must follow Ex: =SUM

A set of parentheses must enclose the arguments

Be sure that all parentheses are closed, this becomes especiallyimportant when writing complex formulas with multiple functions

Syntax for selecting cells when writing formulas: To use individual cells, separate the cell references with a comma

Example: =sum(A2,A3,A4) tells Excel to sum A2, A3, and A4

To select a contiguous region of cells, use a colon

Example: =sum(A2:A4) tells Excel to sum all cells in column A

rows 2 through 4 To select both a region of cells and individual cells a combination of a

colon and a comma can be used

Required/Optional Formula


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equ ed/Opt o a o u a

Components

When typing a formula into Excel, Excel displays thecomponents of the formula The piece of the formula that you are currently entering will be

bolded

Ex: rate The necessary punctuation will be displayed (commas,

parentheses, colons, etc.)

The pieces shown in [brackets] are optional

If you move the cursor over the name of the function,you can link to the help menu to get specific detailedinstructions on using the function

=AVERAGE(value:value)


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( )

Returns the average of a group of numbers

Values can be either a range of numbers,individual numbers, or a combination of both

=COUNT(value:value)


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( )

Returns the number

of cells in a rangethat contain numbers

It will not include textor blank cells in the

count

=COUNTA(value:value)


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( )

Returns the number of cells in a range that containnumbers or text

It WILL include text but not blank cells in the count

=MAX(value,value)


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( , )

Returns the largest

value in a set ofvalues

=MIN(value,value)


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( , )

Returns the smallest

value in a set ofvalues

MIN and MAX (contd)


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MIN and MAX (cont d)

Using MIN

Use MIN to restrict avalue below a certainlevel

Using MAX Use MAX to

constrain a numberabove a certain level

=SUM(value:value)


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( )

Returns the sum of agroup of numbers

Using Sumbars


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g

Sumbars ensure that anadded row at the end of asum range will beautomatically picked upby the SUM function

To use a Sumbar,include one extra blankrow in your SUM range

3+4+1+3 does not equal 8!

Notice how summingthrough an extra row picks

up item d on the right.

TipIt is a good idea to display something inthe blank cell, such as a single space

formatted with a single accountingunderline

=ROUND(number,number of digits)


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( g )

Returns a number roundedto a specific number ofplaces past the decimal

Rounding can be done to anumber or a function shownin these examples

=ROUNDUP(number, num_digits)


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( g )

ROUNDUP returns anumber rounded UP to aspecific number of placespast the decimal

ROUNDDOWN returns anumber rounded DOWN toa specific number of places

past the decimal

Round column A values up to the nearest tenth.

Round column A values down to the nearestwhole number.

=ABS(number)


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Returns the absolute value of a number

=SQRT(number)


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Returns the square root of a number

Logic Functions


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Logic functions are used to test whether a value or set ofvalues is =, >, or < another value or set of values (logicaltest)

There are 3 main types of logic functions: AND, OR, andIF

AND functions test whetherallarguments are true

OR functions test whetheranyarguments are true

Both AND and OR functions return either TRUE or

FALSE as the formula result IF functions also conduct a logical test, but they return a

specified statement based on whether the test is true orfalse

AND vs. OR


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Syntax for AND =AND(logical test 1, logical test 2, )

The formula will return TRUE only if alllogical tests are true, otherwise it willreturn FALSE

Syntax for OR =OR(logical test 1, logical test 2, )

The formula will return TRUE if any ofthe tests are true

It will only return FALSE if all the logicaltests are false

AND

OR

=IF(logical test, value if true, value if false)


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The value can be a number, cell reference, formula, or text To make the value a formula, use normal formula syntax (without an

additional =)

To make the value text, set the text off with quotation marks

=NOT(logical)


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Reverses the result of a logical test

Use NOT when you want to make sure a value is notequal to one particular value

The NOT function will become more valuable with morecomplex formulas

IS Functions


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Used for testing the type of value or reference

Checks the type of value and returns TRUE or FALSEdepending on the outcome

Syntax:= ISBLANK(value)

ISERR(value)

ISERROR(value)ISLOGICAL(value)ISNA(value)ISNONTEXT(value)ISNUMBER(value)

ISREF(value)ISTEXT(value)

For example: ISERROR will test to see if a cell includes an error such

as #N/A, #VALUE!, #REF!, #DIV/0!, #NUM!, #NAME?, or #NULL!

=COUNTIF(range,criteria)


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Returns the amount of

numbers in a given rangethat fit specific criteria

If the criteria is either text

or a logical test, it must bein quotes

=SUMIF(range,criteria)


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Returns a sum ofnumbers in a givenrange that fit specificcriteria

=SUMIF(criteria range, criteria, sum range)


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The SUMIF function can

also sum specific numbersbased on criteria exhibitedin a different column

Syntax: For this example,Excel will sum thenumbers in column Cwhose column B value isProduct B (equivalent toB4)



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Custom Number Formats allowfor formats outside of thosebundled with Excel

Alt + O + E, on the Numberpage, the last option under

Category (Alt + C) The syntax is:

POS;NEG;ZERO;TEXT

Example: Yes/No Trigger Syntax:

Yes;ERROR;No;ERROR Returns Yes for any positive

number, No for zero and ERRORfor any negative number or text

Nesting Functions


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Formulas can be combined for complex calculations

Types of functions commonly nested: Logic

Ex: =IF(AND())

Error

Ex: IF(ISERROR()) Formatting

Ex: ROUND(MAX())

How it works: Excel will begin by evaluating the innermost functionand then work out

For example, in the above formatting example Excel will firstevaluate the MAX function and then round that result

Logic


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The AND function first checks to see if all the arguments are true. Then, the IFfunction returns yes if the AND function was fulfilled and No if it was not

Statistic


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The SUM function first sums actual revenue and then subtracts the sum of projectedrevenue. The MAX function then compares this difference with 0 and returns which

ever is greater.

=FIND(find_text,within_text,start_num)


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FIND locates a desired text string within a main text string

It returns the number of characters from the startingposition of a desired string to the first character of themain text string

Find_text: the text you want to find

Within_text: the main text which contains the text youwant to find

Result: 19

=MID(text,start_num,num_chars)


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Returns a specific number of characters from a text

string, starting at the position you specify, based on thenumber of characters you specify Text: the text string containing the characters you want to extract

Start_num: the position of the first character you want to extract intext

The first character in text has start_num 1, and so on

Num_chars: specifies the number of characters you want MID toreturn from text

Result fromprevious slide

=LEFT(text,num_chars)


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Returns the first character or characters in a text string,based on the number of characters you specify.

Text: the text string that contains the characters you wantto extract Num_chars: specifies the number of characters you want LEFT to

extract

Num_chars must be greater than or equal to zero If num_chars is greater than the length of text, LEFT returns all of text

If num_chars is omitted, it is assumed to be 1

Results fromprevious slides

=LEN(text)


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Returns the number of characters in a text string

Text is the text whose length you want to find Spaces count as characters

Formatting Numeric Values as Text


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Numeric values can beformatted as text using anapostrophe

Text is left aligned by default

Example: To format the value2005 as text, simply enter:2005 Notice that the leading

apostrophe will not be displayedin the cell in front of 2005

Formula results can beformatted as text using thecharacter combination &

Notice the trailing & is not displayed in the cell.

Notice the apostrophe is not displayed in the cell.

Converting Numeric Values using TEXT


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The TEXT function has the ability to convert a numeric

value into text The result from TEXT is no longer a numeric value but

rather a string of text

Syntax: =TEXT(value,number format)

Example: TEXT(5, $0.00) results in the text $5.00

Mixing Text and Links via &


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The Ampersand (&) gives the ability to mix text and links informulas

Syntax: Notice the = to indicate a formula Text before Link: =Text&Link

Text after Link: =Link&Text

Link between Text: =Text&Link&Text

The link can be eithera cell reference or a formula containingcell references

Examples: =The result is: &A1 =A1& is the result

=I am shocked that &A1& is the result

Text and Location: Linked Footnote Markers


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Linked footnote markers

update when the footnotenumber changes

Use the LEFT function

Syntax:

=LEFT(cell,num_chars) Returns the specified left

most number of charactersfrom a designated cell

Notice how the Footnotemarker in A3 automaticallyupdates when the footnote isrenumbered in A6

DATE Function


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Returns the sequential serial number that represents a

particular date. If the cell format was General before thefunction was entered, the result is formatted as a date.

Syntax: =DATE(year,month,day) Year: can be one to four digits.

Month: number representing the month of the year

Day: number representing the day of the month

=EOMONTH(start_date, months)


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Returns the end-of-month date that is a specified number of

months passed start_date Example: EOMONTH(DATE(2006,1,1),12) returns 39113

39113 is the serial date that represents 1/31/2007 whenformatted as a Date

EOMONTH requires that the Analysis ToolPak be activated Tools -> Add-ins -> Select Analysis ToolPak


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Best Modeling Practices

Model Layout


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Avoid laying out modelpages horizontally

A vertical layout has twomain advantages: The ability to use Pg. Up and

Pg. Down

Keeping column consistency

among years

A horizontal layout hindersyour ability to freely insertand delete rows

Never layout a model horizontally

Modular Modeling


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Involves splitting the portionsof your model into piecescalled modules

Devote a worksheet to eachfinancial statement

Adds organization to the

model Provides the ability to copy

modules to other workbooksso that all work does notneed to be created from

scratch

Notice that each piece of the model is contained inits own worksheet


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Avoiding Shortcut Formulas whenSumming


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When working with modularmodels, it is not a good idea

to reference multipleworksheets in a summation

A better approach is to bringall values you wish toreference to the current page

before summing This adds clarity to your

modelThis is the better approach!

Dont do this!


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Using Cumulative Checks - ExampleC l ti h k d t


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Cumulative checks are used toobtain a grand check for an

entire section of the model Example: Confirm that the

Balance Sheet balances You must ensure that Assets (A)

= Liabilities (L) + Equity (E)

Use =ABS((A-(L+E)))

Add each years check to thefollowing years check to arrive ata total cumulative check

Using the absolute valuefunction will safeguard againstcanceling out a value in the

check if there is an offsettingvalue in a future year

If the cumulative check is 0, thenall checks must be 0, therefore

the Balance Sheet is balanced

Building Checks Into a Model


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Building a system of checks into your model will ensure that youdont have any glaring errors

Typical things to check for: Balance Sheet balances and does not contain any negative numbers where

negative numbers do not make sense For example, debt should never be negative, accumulated depreciation will be negative

Ensure that sources of funds always equal uses of funds

Ensure that data tables are recalculated before printing All checks from the model should be summarized in one place on

the cover page This makes it quick and easy to check the entire model

You can use an if statement to change the title of your

model to ERROR if any of your checks indicate

a problem

Tricks Excel

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