Overview

of
Financial Analysis in Excel for professionals
Objective
 Get a firm footing for an advance start in spreadsheet use.
 Using spreadsheets for the financial analysis
 Receive more than 100 magic keys’ in Microsoft's most popular programs, Excel.

Course content overview:

The Essential spreadsheets for accountants course is for you if you want to:
 Discover formulae that solve many common and advance accounting financial problems.
 Learn functions, its pitfalls and the solutions to circumvent them.
 Build an import and report application in which you can easily identify new imported
codes and then, with minimal effort, incorporate them.
 Find out the different ways to consolidate data, and the pros and cons of various
solutions. A PivotTable on multiple consolidation ranges is one method covered.
 Find the solution of your business planning and budgeting, analyzing sales and forcust.

Who should attend:

All Excel users except beginners. This is a course that advanced Excel users should also attend,
as it covers spreadsheet design conventions, good practice and use of styles for formatting. Even
advanced users probably won't know 80% of this.

Course Duration: Two days or 16 credit hours.

Learn in a positive environment

 Be assured the advice you get is well-proven and utilised.

 Feel free to ask questions.
 Enjoy a friendly environment where you don’t feel you’re holding others up.
 Instantly apply what you’ve learned on return to work.

NB: This course will be very effective for three days Exercise/Training.
 Financial Analysis in Excel for professionals
Session-1
CHAPTER 1 WRITING FORMULAS
1.1 The Basics Of Writing Formulae
1.2 Tool for using this chapter effectively: Viewing the formula instead of the end result
1.2.a The “A1” vs. the “R1C1“ style of cell references
1.2.b Writing a simple formula that references cells
1.3 Types Of References Allowed In A Formula
1.3.a Referencing cells from another worksheet
1.3.b Referencing a block of cells
1.3.c Referencing non–adjacent cells
1.3.d Referencing entire rows
1.3.e Referencing entire columns
1.3.f Referencing corresponding blocks of cells/rows/columns from a set of worksheets
1.4 Working Simultaneously On Cells In Different Worksheets

CHAPTER 2 LOAN REPAYMENTS

2.1 Single Period Payment On Principal And Interest
2.1.a Relation between NPER and RATE when the payment period is less than one year
Payment on Principal only (not on interest)
2.1.b Payment on interest only (not on principal)
2.1.c Payment on interest and principal
2.2 Loan Repayments (Cumulative Payment Over Periods)
2.2.a Cumulative repayment of principal
2.2.b Cumulative interest paid on a loan
Cumulative interest and principal paid on a loan between user-chosen periods
Summary of loan repayment formulae
2.3 Related Functions: RATE & NPER
RATE (“Interest Rate per period of an Annuity”)
NPER (“Number of periods in an Investment”)
2.4 Mapping Between Simple And Compound Rates For The Same Annual Interest
EFFECT (“Effective Interest Rate”)
NOMINAL (“Nominal Interest Rate”)
Session-2

CHAPTER 3 DISCOUNT CASH FLOWS

3.1 Present Values
PV , NPV, XNPV
3.2 Discount Cash Flow Analysis: Rates Of Return For An Investment/Project
IRR, MIRR , XIRR
3.3 Future Values
FV function
Rate versus NPER
FVSCHEDULE function
Difference between FV and FVSCHEDULE
3.4 Annuities — Comparative Summary Of Functions
3.5 Depreciation
3.5.a Depreciation of an asset over a single period
Straight-line and Sum-of-year’s depreciation methods
SLN function: Straight line depreciation
SYD function: Sum-of-years' digit method
3.5.b Depreciation of an asset over specified period using declining balance methods
Fixed declining balance method
Variable declining balance method
Allowing for a switch over between declining balances and straight line – the VDB
function
3.6 Risk Analysis— “If-Then” Scenarios

CHAPTER 4 SECURITIES FUNCTIONS

4.1 Information Requirements
4.2 Coupon-Related Functions
COUPDAYBS, COUPDAYS, COUPDAYSNC, COUPNCD, COUPPCD , COUPNUM
DURATION & MDURATION (Bond price’s response to changes in yield) functions
4.3 Price versus Yield, & Interest Calculations
4.3.a Security that pays periodic interest (Coupon Paying Bond)
YIELD, PRICE, ACCRINT
Price and Yield for odd (long or short) first or last period Bonds
Odd First Period, Yield
Odd Last Period, Yield
4.3.b A discounted security which may pay redemption at maturity
DISC, PRICEDISC, YIELDDISC
4.3.c Security that pays interest at maturity
PRICEMAT, YIELDMAT, ACCRINTM
4.3.d Fully invested security
INTRATE, RECEIVED
4.4 Information Requirements For Loan Repayment And Securities Functions
4.5 T Bill Formulae, TBILLEQ function
TBILLPRICE function
TBILLYIELD function: Yield for a treasury bill (given market price or par value)
Session-3

CHAPTER 5 FUNCTIONS FOR BASIC STATISTICS

5.1 “Averaged” Measures Of Central Tendency
5.1.a AVERAGE
5.1.b TRIMMEAN (“Trimmed mean”)
5.1.c HARMEAN (“Harmonic mean”)
5.1.d GEOMEAN (“Geometric mean”)
5.2 Location Measures Of Central Tendency (Mode, Median)
5.2.a MEDIAN
5.2.b MODE
5.3 Other Location Parameters (Maximum, Percentiles, Quartiles, Other)
5.3.a QUARTILE
5.3.b PERCENTILE
5.3.c Maximum, Minimum and “Kth Largest”
MAX (“Maximum value”)
MIN (“Minimum value”)
LARGE
SMALL
5.3.d Rank or relative standing of each cell within the range of a series
PERCENTRANK
RANK
5.4 Measures Of Dispersion (Standard Deviation & Variance)
Sample dispersion: STDEV, VAR
Population dispersion: STDEVP, VARP
5.5 Shape Attributes Of The Density Function (Skewness, Kurtosis)
5.5.a Skewness
5.5.b Kurtosis
5.6 Functions Ending With An “A” Suffix

CHAPTER 6 OTHER MATHEMATICS & STATISTICS FUNCTIONS

6.1 Counting and summing
COUNT function
COUNTA function also counts cells with logical or text values
COUNTBLANK function counts the number of empty cells in the range reference
SUM function, PRODUCT function, SUMPRODUCT function
6.2 The “If” counting and summing functions: Statistical functions with logical conditions
SUMIF function, COUNTIF function
6.3 Transformations (log, exponential, absolute, sum, etc)
Standardizing a series that follows a Normal Density Function
6.4 Deviations from the Mean
DEVSQ, AVEDEV
6.5 Cross series relations
6.5.a Covariance and correlation functions
6.5.b Sum of Squares
SUMXMY2 function, SUMX2MY2 function
Session-4

CHAPTER 7 LOGICAL & INFORMATION FUNCTIONS

7.1 Negative Nesting (The Not Function)
7.2 Functions That Output True/False After Evaluating If All/One/None Of The Logical
Expressions Are True (The Functions— And, Or)
7.2.a AND function
7.2.b OR function
7.2.c NOT(AND) function
7.2.d NOT(OR) function
7.3 Information Functions On Type Of Data In Cell (Is Functions)
7.3.a TYPE function provides information on the data type of the value in a cell
7.4 Testing If Odd Or Even Number
ISODD function
ISEVEN function
7.5 Information On Error Type In A Cell (#N/A, #Value!, #Ref!, #Div/0!, #Num!, #Name?,
#Null!) 202
7.5.a ERROR.TYPE function provides information on the Error type — if any - in a cell
7.6 Lookup Or “Location” Functions
The functions: COLUMN/ROW
The functions: COLUMNS/ROWS
The functions: INDEX, MATCH, OFFSET, HYPERLINK, ADDRESS,
TRANSPOSE, AREAS, INDIRECT

CHAPTER 8 “SMART” NESTED FUNCTIONS THAT RESPOND TO FORMULA RESULT

8.1 If Function
8.2 Choose Function
8.3 Working with Nested functions
8.3.a Defining the Nested Function
Nesting by hand
8.3.b Nesting with the assistance of the “Insert Function” dialog
8.3.c Formula AutoCorrection
8.3.d Formula Bar identification of error
8.3.e Function identification in the Formula Bar Assistant
Identification of cells referenced by the function highlighted in the Formula Bar
8.4 Multiple Nesting: Tips

CHAPTER 9 “IF-THEN” ANALYSIS: SCENARIOS AND GOAL SEEK

9.1 Scenarios (for “If this assumption-then this result”)
9.1.a Defining the Scenarios, Using the Scenarios, Scenario summary, Using the “Group and
Outline” tool, Scenario-based Pivot Tables
9.2 Goal Seek (“If I want this cell to have a certain result, what value should that cell take)
9.2.a Setting the desired value for the “target” cell (The formula, references the “solution” cell)
9.2.b Choosing the “solution” cell

Bonus learning: Excel Solver.