excel tips (3)
TRANSCRIPT
-
7/31/2019 Excel Tips (3)
1/32
www.edupristine.com
Financial Modeling in Excel
2011
-
7/31/2019 Excel Tips (3)
2/32
www.edupristine.com Neev Knowledge Management
Pristine
Agenda
Introduction and Context
Efficiently using excel preparation for modeling
Excel Summarization Using Pivot Tables
2
-
7/31/2019 Excel Tips (3)
3/32
www.edupristine.com Neev Knowledge Management Pristine
Key Authorization
GARP (2007-11)
Authorized Training provider -FRM
Largest player in India in the area of riskmanagement training. Trained 1000+ studentsin risk management
PRMIA (2009-11)
Authorized Training provider PRM/ APRM
Sole authorized training for PRM Training inIndia. Largest player in India in the area of riskmanagement training. Trained 1000+ studentsin risk management
CFA Institute (2010-11)
Authorized Training provider CFA
Pristine is now the authorized training providerfor CFA Exam trainings . Pristine is largesttraining provider for CFA in India with presenceacross seven major cities.
FPSB India (2010-11)
Authorized Training provider -CFPAn authorized Education Provider forChartered Financial Planner Charter.
-
7/31/2019 Excel Tips (3)
4/32
www.edupristine.com Neev Knowledge Management Pristine
Key Associations*
HSBC (2008)
Risk Management and Quant.
Analysis
New joinees in HSBC had a gap inknowledge of Risk Management
and quantitative skills. Conductedtrainings (On campus) to bridge the
gap
*Indicative List
Mizuho (2010)
Financial Modeling in Excel
Bankers were using excel modelsthat they could not
understand. Conductedfinancial modeling in Exceltrainings to bridge the gap
Bank Of America
Continuum Solutions(2010)
Finance for Finance
Associates were trained onvaluation and mergers
and acquisitions
J. P. Morgan (2010)
Financial Modeling inExcel
The Real Assets Groupwere trained in Excel forinfrastructure and real-
estate modeling
Franklin Templeton
CFA (2010)Students were facing a gap inthe overall understanding offinance topics like corporatefinance, FSA and valuation.
Provided training for over 100hours to bridge the gap
Credit-Suisse India (2009)
Risk Management and Quant.Analysis
IT Professionals of Credit-Suisse India were trained on
risk management.
Ernst & Young (2010)
Real Estate Modeling
Senior Associates weretrained on building
valuation models for realestate
ING Vyasa (2010)
Infrastructure & ProjectFinance
Bankers were trained onmaking integratedmodels for project
finance andinfrastructure.
-
7/31/2019 Excel Tips (3)
5/32
www.edupristine.com Neev Knowledge Management Pristine
Key Associations
IIM Calcutta (2010-11)
Financial Modeling in Excel
Students about to go for internshipsand join jobs found a gap in theirgrasp of knowledge of excel forfinancial modeling. Conducted
training for 75+ students with anaverage rating of 4.5+
BITS Pilani (2009)
Workshops on Basics ofFinance
Most of the students desire acareer in finance. Conductedtraining for 350+ students with
an average rating of 4.5+
IIT Delhi (2009)
Corporate finance
Students get placed in financecompanies (UBS, GS, MS, etc)with no understanding of thesubject/ Job Profile. Conductedworkshop to bridge the gap
NUS Business School (2011)
Financial Modeling in Excel
Second year MBA studentswere given a full 2-day
workshop on creating financialmodels. They learnt how tocreate integrated models of
valuation.
NISM (2008-11)
Derivatives in Hedging (2008)
Financial Modeling (2011)
Corporate in Ludhiana incurred hugelosses because of derivative trades(for hedging). Conducted trainingsfor directors and CFOs for betterunderstanding of derivative products
FMS Delhi (2010-11)
Financial Modeling in Excel
Final Year MBA students of Facultyof Management Studies, Delhi
University were trained in financialmodeling so as to prepare them
better for a job in finance.
IEMR Delhi (2010-11)
Financial Modeling in Excel
Final Year MBA students of IEMRwent through extensive financial
modeling workshop to acquire skillsof financial modeling.
SIMSREE (2010)
Final Year MBA students ofSydenham MBA, Mumbai were
trained in financial modeling so asto prepare them better for a job in
finance.
-
7/31/2019 Excel Tips (3)
6/32
www.edupristine.com Neev Knowledge Management Pristine
Excel as the most important tool for modeling
Excel is one of the most widely used tools in financial industry
Easy to use
High reach & access to software across geographies
Flexibility
Robustness
Inbuilt features (Most people would not even be using 95% of the features) & Extendibility
Modular and Object Oriented Architecture
Excel as a data-store
Easy to store and retrieve information Flexibility to put many data-types in the same sheet
Functions and a range of features
Excel is easily extendible to be used as a Modeling tool
Modeling Context
Understand the industry models being used
Create your own models Rather than just using them Improve & enhance productivity in work
Extend these models for your use
Debug Problems
6
-
7/31/2019 Excel Tips (3)
7/32
www.edupristine.com Neev Knowledge Management Pristine
Agenda
Introduction and context
Efficiently using excel preparation for modeling
Excel Summarization Using Pivot Tables
7
-
7/31/2019 Excel Tips (3)
8/32www.edupristine.com Neev Knowledge Management Pristine
Key aspects of Modeling & Excel Usage
Building a ROBUST model is a must for other people to use your model
It should generate the correctresults
It should have proper area for Inputs/ Outputs
It should be able to handle errors properly
Naming/ Labeling of data items should be done properly
Accidental changing of model parameters should be avoided
The model should be easy to understand on computer and in printout
Reusable components can be made in the excel sheet, which can be made later
SPEED is the key in modeling
A large model might have multiple excel sheets and a lot of formulas and calculations. It is necessary tonavigate through the excel sheet in a speedy manner and understand it
It is a fact that mouse is 5 times slower than using the keyboard to use excel. Due to heavy involvementof the users, having a strong command over the keyboard shortcuts is a must!
A well designed excel sheet is easy to understand as well
8
-
7/31/2019 Excel Tips (3)
9/32www.edupristine.com Neev Knowledge Management Pristine
Lets take a moment to understand components of Excel
ToolbarFormula Bar
Cells
Name
Worksheet
Excel 2007 Interface
9
Excel 2003 and 2007 are being widely used in the industry. Most of features of 2007 are backward compatible
-
7/31/2019 Excel Tips (3)
10/32www.edupristine.com Neev Knowledge Management Pristine
Lets take a moment to understand components of excel
Excel 2007 Interface
Excel 2003 and 2007 are being widely used in the industry. Most of features of 2007 are backward compatible
10
-
7/31/2019 Excel Tips (3)
11/32www.edupristine.com Neev Knowledge Management Pristine
Basic Editing and Saving Excel
CTRL + S
CTRL + C
CTRL + V
CTRL + X
CTRL + ZCTRL + A
CTRL + B
ALT + TAB
ALT + F4CTRL + TAB
Save Workbook
Copy
Paste
Cut
UndoSelect All
Bold
Switch Program
Close ProgramSwitch workbooks
Some Special Shortcuts
CTRL + ALT + V
CTRL + 9
SHIFT + CTRL + 9
CTRL + 0
SHIFT + CTRL + 0
ALT + H + O + I
SHIFT + F11SHIFT + Spacebar
CTRL + Spacebar
SHIFT + ALT +
SHIFT + ALT
CTRL + Minus sign
F2
Paste Special
Hide Row
Unhide Row
Hide Column
Unhide Column
Fit column width
New worksheet
Highlight row
Highlight column
Group rows/columns
Ungroup rows/columns
Delete selected cells
Edit cells
Formatting
CTRL + 1
ALT + H + 0
ALT + H + 9
SHIFT + CTRL + ~
SHIFT + CTRL + !
SHIFT + CTRL + #
SHIFT + CTRL + $
SHIFT + CTRL + %
CTRL + ;
Format Box
Increase decimal
Decrease decimal
General format
Number format
Date format
Currency format
Percentage format
Enter the date
Inside the cell Editing
ALT + ENTER
SHIFT + Arrow
SHIFT + CTRL + ArrowF4
ESC
Start new line in same cell
Highlight within cells
Highlight contiguous itemsToggle $
Cancel a cell entry
Formulas
= (equals sign)
ALT + =
CTRL +
CTRL + ~
F9
SHIFT + CTRL + Enter
Start a formula
Insert AutoSum formula
Copy formula from above cell
Show formulas/values
Recalculate all workbooks
Enter array formulaAuditing Formulas
ALT + M + P
ALT + M + DALT + M + A + A
CTRL + [
CTRL + ]
F5 + Enter
SHIFT + CTRL + {
SHIFT + CTRL + }
Trace immediate precedents
Trace immediate dependentsRemove tracing arrowsGo to precedent cells
Go to dependent cells
Go back to original cell
Trace all precedents (indirect)
Trace all dependents (indirect)
Navigating / Editing
Arrow keys
CTRL + Pg Up/Down
CTRL + Arrow keysSHIFT + Arrow keys
SHIFT + CTRL + Arrow
Home
CTRL + HomeSHIFT + ENTER
TAB
SHIFT + TAB
ALT +
Move to new cells
Switch worksheets
Go to end of continuous range Select a cellSelect range
Select continuous range
Move to beginning of line
Move to cell A1Move to cell above
Move to cell to the right
Move to cell to the left
Display a drop-down list
Change all Inputs to Blue:Press F5 then Select "Special" then "Constants", "OK then Manually changeselection to blue font colorChange all Formulas to Black: Select "Formulas" instead of "Constants thenchange selection to black color
-
7/31/2019 Excel Tips (3)
12/32www.edupristine.com Neev Knowledge Management Pristine
Moving across toolbars in Excel 2003 and 2007
Press Alt Key to activate Main toolbar
For Example, Alt F for file
12
Use CTRL + TAB to Go to
next toolbar
Use Arrow key to navigate
further
In 2007, Pressing the ALT key automatically shows the options
-
7/31/2019 Excel Tips (3)
13/32
-
7/31/2019 Excel Tips (3)
14/32www.edupristine.com Neev Knowledge Management Pristine
Simple Exercises in Excel
The financials of a start-up company are given to you. The company would be eligible for funding iftheir operating profit margin is greater than 35% and CAGR in revenue growth is greater than 50%.
Create a model to check if the company is eligible for funding. Also visually indicate the eligibility. Use worksheet B
Hint
Use (P(t)/ P(t-k))^(1/k) -1 to calculate CAGR
Use AND function to calculate eligibility
Use IF function to print it
Use conditional formatting to output the results
Email ids of 100 people are given to you. They all need to be migrated to a new domain ofedupristine.com. Write a function to migrate all email ids to new domain
Use worksheet C
Hint
Use FIND to find the common character
Use LEFT function Use CONCATENATE function
14
-
7/31/2019 Excel Tips (3)
15/32www.edupristine.com Neev Knowledge Management Pristine
Arrays in Excel
15
Array (Can be loosely thought of as a list) is agroup of cells or values that Excel treats as a
unit No longer treats the cells individually, but list of
cells as an individual entity
Since individual cells are not independententities, so they cannot be changed individually
Enables apply a formula to every cell in the rangeusing just a single operation
For any matrix Operation
Calculate the exact size of the transposed Matrix
Select the appropriate range
Use the function
Press SHIFT + CTRL + ENTER
Use Worksheet D
To Run Array Functions Remember to use CTRL + SHIFT + ENTER
-
7/31/2019 Excel Tips (3)
16/32www.edupristine.com Neev Knowledge Management Pristine
Frequently Used Array functions
16
Function Name Function
SUMPRODUCT() To Sumproduct 2 matrices
TRANSPOSE() To transpose a matrix
MATCH() Match and Index are used in conjunction as a lookup function
INDEX() Match and Index are used in conjunction as a lookup function
VLOOKUP() To lookup for a particular value in array, with the starting column acting as a
lookup reference
COLUMN() Returns the column number of the cell referenced
ROW() Returns the row number of the cell referenced
HLOOKUP() To lookup for a particular value in array, with the top row acting as lookupreference
-
7/31/2019 Excel Tips (3)
17/32www.edupristine.com Neev Knowledge Management Pristine
Using the VLookUp Function
17
VLOOKUP() function
The V in VLOOKUP() stands for vertical
Works by looking in the first column of a table for thevalue you specify
It then looks across the appropriate number of columns(which you specify) and returns whatever value it findsthere
The final option (range_lookup) is a Boolean value thatdetermines how Excel finds the value. Always useFALSE- for exact match
Whenever looking for data picked from the net, trim the stringsbefore comparison
Question (Use WorkSheet E)
The ID of defaulters and their amount and phone numberhas been provided by the Credit Bureau in Columns A to D.
Column F contains the IDs of your clients. Use Vlookupfunction to find out the default amount of your clients.
One of the most widely used functions in Excel
-
7/31/2019 Excel Tips (3)
18/32www.edupristine.com Neev Knowledge Management Pristine
Using the HLookup Function
18
HLOOKUP() function is
H in HLOOKUP() stands for horizontal
Similar to VLOOKUP()
It searches for the lookup value in thefirst row of a table
Question: Use Worksheet F
Various expenses of Pristine aregiven in a table. Write a function tocalculate the total expenses for anydesired month (user should be able tochange this value, and automaticallythe expenses should be updated)
Both Vlookup and Hlookup have a limitation of using the first Column/ Row as reference
-
7/31/2019 Excel Tips (3)
19/32www.edupristine.com Neev Knowledge Management Pristine
Index & Match Functions
19
INDEX() returns the reference or the value of a cell at theintersection of a row and column inside a reference
MATCH() function
looks through a row or column of cells for a value
If it finds a match, it returns the relative position of the match
in the row or column Use the usual wildcard characters within the lookup_value
argument (provided that match_type is 0 and lookup_value istext)
Use the question mark (?) for single characters and theasterisk (*) for multiple characters
See Worksheet G
-
7/31/2019 Excel Tips (3)
20/32www.edupristine.com Neev Knowledge Management Pristine
Use Index and Match Any Column & row Lookup
20
Index and Match can be used in conjunction to perform complex lookup functions
Use Match to generate the row number that you are interested in
Use Index to generate the value that you are looking for
Similar to implementation of a new kind of directory service
Use Worksheet H
Various expenses of Pristine are given in a table. Write a function to calculate thedesired expense head for any desired month (user should be able to change both thevalues, and automatically the expenses should be updated)
Easily Extendible approach to get any generalized kind of search(where both row and column can be variable)
Always Use FALSE inthe boolean required
for comparison
-
7/31/2019 Excel Tips (3)
21/32www.edupristine.com Neev Knowledge Management Pristine
Agenda
Introduction and context
Efficiently using excel preparation for modeling
Excel Summarization Using Pivot Tables
21
-
7/31/2019 Excel Tips (3)
22/32www.edupristine.com Neev Knowledge Management Pristine
Pivot Tables An introduction
Easy Summarization & Analysis Tool
22
-
7/31/2019 Excel Tips (3)
23/32www.edupristine.com Neev Knowledge Management Pristine
Pivot Tables
Summarize data in one field
called a data field
and break it down according to the data inanother field.
The unique values in the second field (calledthe row field) become the row headings
Further break down your data by specifying athird field
called the column field
23
-
7/31/2019 Excel Tips (3)
24/32www.edupristine.com Neev Knowledge Management Pristine
Terms used in Excel
Data source: The original data
Range, a table, imported data, or an external data
source.
Field: A category of data, such as Region, Quarter, orSales
Most PivotTables are derived from tables or databases,a PivotTable field is directly analogous to a table ordatabase field
Row field: A field with a limited set of distinct text,
numeric, or date values to use as row labels in thePivotTable
Column field: A field with a limited set of distinct text,numeric, or date values to use as column labels for thePivotTable
Report filter: A field with a limited set of distinct text,numeric, or date values that you use to filter thePivotTable view
PivotTable items: The items from the source list usedas row, column, and page labels
24
-
7/31/2019 Excel Tips (3)
25/32
www.edupristine.com Neev Knowledge Management Pristine
Summarize Large Data
To start the pivot wizard:
ALT D + P
To complete the process, press finish
Use Example I
Calculate Region Wise, Year wise sales
Give Product wise Data for 2008 Only
25
-
7/31/2019 Excel Tips (3)
26/32
www.edupristine.com Neev Knowledge Management Pristine
Summarize Large Data
To start the pivot wizard:
ALT D + P
To complete the process, press finish Use Example I
Calculate Region Wise, Year wise sales
Give Product wise Data for 2008 Only
26
-
7/31/2019 Excel Tips (3)
27/32
www.edupristine.com Neev Knowledge Management Pristine
Filtering for Particular Rows/ Columns
Use Example I
Calculate Region Wise, Year wise sales
Give Product wise Data for 2008 Only
Get Data only for Delhi
27
-
7/31/2019 Excel Tips (3)
28/32
www.edupristine.com Neev Knowledge Management Pristine
Other Customization Options
Selecting the entire PivotTable: Choose Options, Select, Entire PivotTable
Selecting PivotTable items: Select the entire PivotTable, then choose Options, Select. In the list,
click the PivotTable element you want to select: Labels and Values, Values, or Labels
Formatting the PivotTable: Choose the Design tab and then click a style in the PivotTable Stylesgallery
Sorting the PivotTable: Click any label in either the row field or the column field, choose the Optionstab, and then click either Sort A to Z or Sort Z to A. (If the field contains dates, click Sort Oldest toNewest or Sort Newest to Oldest, instead.)
Refreshing PivotTable data: Choose Options and then click the top half of the Refresh button Filtering the PivotTable: Click-and-drag a field to the Report Filter area, drop down the report filterlist, and then click an item in the list
28
-
7/31/2019 Excel Tips (3)
29/32
www.edupristine.com Neev Knowledge Management Pristine
Give the average sales in regions
Use Example I
Calculate Region Wise, Year
wise sales Give Product wise Data for
2008 Only
Get Data only for Delhi
Instead of Total, give theaverage sales
29
-
7/31/2019 Excel Tips (3)
30/32
www.edupristine.com Neev Knowledge Management Pristine
Changing the Pivot Table
Click any cell in the PivotTablesdata area
Choose Formulas, Calculated Field Excel displays the Insert
Calculated Field dialog box
Use the Name text box to enter aname for the calculated item
Use the Formula text box to enterthe formula you want to use for thecalculated item
Use Example I Calculate Region Wise, Year
wise sales
Give Product wise Data for 2008Only
Get Data only for Delhi
Instead of Total, give the
average sales Calculate the forecast for sales
in 2009
30
-
7/31/2019 Excel Tips (3)
31/32
www.edupristine.com Neev Knowledge Management Pristine
Errors in Functions
Error Meaning
# DIV/ 0! Divide by Zero Error
Generally seen when trying to divide by empty cell
# NAME? Function name not found error
Generally seen in misspelling of function
# N/A Data Not available
Quite often seen Vlookup cannot find data
# REF! Invalid Cell referenceTypically when a cell is referenced, which has been deleted
# VALUE! Argument/ Operand of the wrong type
# NUM! Problem in value
Typically when a +ve number is expected, andve number is given as argument
31
Important to understand what kind of error can occur and handle it properly
-
7/31/2019 Excel Tips (3)
32/32
Use ISERROR() to Handle Errors
Excel 2003 has ISERROR() to determine, if there are any exceptions in the formulas
Handle exception and exit the error gracefully
Excel 2007 also has an IFERROR() function to handle errors
Use Worksheet E to handle the errors and display Not Defaulted