Who said Excel takes lot of time / steps do something? Here is a list of 15 incredibly fun things you can do to your spreadsheets and each takes no more than 5 seconds to do.
Happy Friday 🙂
1. Change the shape / color of cell comments
Just select the cell comment, go to draw menu in bottom left corner of the screen, and choose change auto shape option, select a 32 pointed star or heart symbol or a smiley face, just wow everyone 🙂
2. Filter unique items from a list
Select the data, go to data > filter > advanced filter and check the “unique items” option.
3. Sort from Left to Right
What if your data flows from left to right instead of top to bottom. Just change the sort orientation from “sort options” in the data > sort menu.
4. Hide the grid lines from your sheets
Go to Options dialog in tools menu, uncheck the “grid lines” option to remove gridlines from your worksheets. You can also change the color of grid line from here (not recommended)
5. Add rounded border to your charts, make them look smooth
Just right click on the chart, select format chart option, in the dialog, check the “rounded borders”. You can even add a shadow effect from here.
6. Fetch live stock quotes / company research with one click
Just enter the stock symbol (MSFT, GOOG, AAPL etc.) in a cell, alt+click on the cell to launch “research pane”, select stock quotes to see MSN Money quotes for the selected symbol. You can fetch company profiles in the same way. Learn more.
7. Repeat rows on top when printing, show table headers on every page
When you are on the sheet view, just hit menu > file > page setup, go to the last tab, specify “rows to repeat”. You can “repeat columns while printing” as well from the same menu.
8. Remove conditional formatting / all formatting with one click
Just go to Menu > Edit > Clear > All to remove all the formatting from selected cell / range.
9. Auto sum cells with one click
Select a bunch of cells and click on the Sigma symbol on the standard tool bar. Alternatively you can use Alt+= keyboard shortcut.
10. Find width of a column with formula, really!
Just use =cell("width") to find the width of the column to which that formula cell belongs. Width is returned as the nearest integer.
11. Find total working days between any two dates, including holidays
If you work on project plans, gantt charts alot, this can be totally handy. Just type =networkdays(start date, end date, list of holidays) to fetch the number of working days. In the above sample you can see the number of working days between New years day and September first of this year (labor day).
12. Freeze Rows / Columns in your sheet, Show important info even when scrolling
Select the cell diagonally beneath the row / columns you want to freeze (for eg. if you wan to freeze row 1&2 and columns A&B, click in C3), go to menu > window and click on freeze panes.
13. Split sheets in to two, compare side by side to be more productive
Just click on this little vertical bar on the bottom right corner of the sheet (see below) and drag it to create a vertical split. You can do the same way for a horizontal split as well 🙂
14. Change the color of various sheet name tabs
Right click on sheet and select “Tab color” option to change the worksheet tab colors. Group them with similar colors if you have lot of sheets, it looks nice.
15. Insert a quick organization chart
Click on menu > insert > diagram to open the above dialog, just select the organization chart option, enter node values and you have a pretty organization chart. Alternatively learn how to create org charts in excel.
So what do you say now? Isn’t Excel Exciting? 😀
15 Responses to “Modeling Interest During Construction (IDC) – Excel Project Finance”
Thanks again for a very helpful post.
I had a similar problem when trying to model a balance sheet and profit and loss projection. The problem was that interest expense (in P&L) was dependent on a cash shortfall (in BS) which had to be funded. The cash shortfall depended on how much interest was paid, so the mutual dependency made a circular reference.
I addressed it with a macro that calculated interest outside of the P&L, then pasted the calculated amount into the P&L as a value. The model was out of balance, but by repeating the pasting and calculating loop the imbalance reduced to zero. It was a bit messy, and had to be repeated every time a line changed - but it worked.
If I have to do it again I'll read this article again first and see if it can be done more elegantly.
Hi,
The use of a circular reference can be avoided in this case. Just make use of the geometric sum to calculate the interest required. I’ll walk through the example from the spreadsheet.
First calculate the cash needed each year without the interest expense. So you year 1 you need 55 Mn, year 2 105 Mn, and 190 Mn for year 3. The total amount to borrow for year 1 is then (50 Mn)/(1-interest_rate) = (50)/(1-0.1). For years 2 and subsequent the amount borrowed is the cash needed in that year plus the interest_rate times the amount already borrowed. For year 2 (105 + interest_rate * sum(previous debt raised))/(1-interest_rate)=(105+0.1*61.1)/(1-0.1).
This process avoids the need for a circular reference, and makes the calculation more stable.
Thanks,
Tristan
The question is for the year 1 in your case, the amount works out to 45 mn. However in the year 2 you have applied the loan amount as 61.1 mn.
Am I missing something ! Please help !
very helpful information!!!
using circular references and to make model more stable we can use combination of "IF" and "ISERROR" functions. i.e
=if(iserror(formula1),"",(formula1))
this formula will return blank value if there is any error otherwise give the result required.
I usually use this in my models and it makes them very stable......
🙂 🙂 🙂
@Terry: Thats right. Exactly same problem is seen in Interest - Cash cycle in P&L and Cash Flow statement as well. In our trainings on financial modeling in excel, we demonstrate using both the circular loops as well as the macros to take care of this problem. Circular loops have their own pitfalls. If the model enters into a state of error, the error percolates!
@Tristan: Thanks for pointing out. I agree with you that if circular loops can be avoided, they should be avoided.
@Yogesh: This is one way of avoiding the problem. Although circular loops have another problem that they make your sheet slower. Each time, there is a change in the sheet, all the calculations are redone. So if they can be avoided, they should be avoided.
Please note that this was an example (a large one indeed) and I didn't have space to speak about the pitfalls of this approach! I just wanted to illustrate an approach and am glad that some of you found it useful!
I think while posting, there is an error in the images! The last image should be flipped with the one that is posted in step VII!
I think you can try the following simple solution given by Microsoft itself to make the circular works:
Windows: Excel Options -> Formulas -> Put a tick on "Enable iterative calculation"
Mac: Excel -> Preference -> Calculation ->Put a tick on "Limit iteration"
You can change the maximum number of calculation iterations as well as the maximum changes which iteration stops for goal seeking or for resolving circular references based on the number you type in the maximum change box.
Thank you.
Hey All
I heard that we can take care of the circularity with the help of macro for IDC. Can anybody help on the steps to construct the macro for the same.
Regards
Vinay
Hi Vinay,
If you look closely, you are essentially copying the values from the interest calculation to the IDC in project cost.
Basically you can record a macro, that takes the values from interest and pastes special the values in IDC row in project cost.
Then you can run that recorded code in a for loop.
Hope this helps.
Thanks Param for reply.
But before calculating interest, i need to provide for Upfront Equity and Equity, which are essentially part of total project cost. Hence, i need to put in Upfront Equity and Equity to calculate the IDC which is again hitting the total project cost.
Bit of confused on how to remove this circular reference.
Regards
Vinay
Wow, this was a brilliantly simple post. I was looking online for a while before I found this page. Never seen this been explained so beautifully yet so crisply before. Thanks for saving my ass at work! (i'm relatively new to finance + modeling)
Â
I'm not sure why but this web site is loading very slow for
me. Is anyone else having this issue or is it a problem on my end?
I'll check back later and see if the problem still exists.
[…] Project Finance Modeling using Excel – Part 1 & Part 2 […]
I have been reading your blog since my college days. Today, I'm writing just to say thanks.
We have calculated Financial Rate of return of a hydropower projects, and the observer has raised an observation regarding Total Project cost with IDC Rs. 8616.01 million (PKR) and with-out IDC 8352.46 million (PKR). How does the Financial nalysis be calculated on the basis of with-out IDC Or With IDC?????
Please helpf. if possible to spare some time.